Farming enterprises throughout the European Union have traditionally been treated very differently by the state compared with their nonagricultural counterparts. Agricultural activities have been governed by a separate set of policy objectives, political institutions, and support agencies. However, this agricultural ‘exceptionalism’ is being steadily eroded as markets are partially liberalised, farmers are encouraged to pursue new forms of economic activity, and as government institutions are reformed. Farmers are being encouraged to see themselves as ‘entrepreneurs' to face fundamentally changed markets. There is, therefore, renewed attention to the existing levels of generic business skills within the farming sector and to the nature and effectiveness of business advice and support frameworks in enhancing these skills. The paper investigates the extent to which farmers have experienced different patterns of business support use and perceive themselves as having different generic skills needs in comparison with other rural microbusinesses and considers the attractiveness of different models of delivering business advice to the sector. A review is undertaken of the evolution of rural business support in England together with an analysis of data from a survey of almost 1800 rural microbusinesses in the northeast of England. It is concluded that there are a number of significant challenges facing the adjustment of the farm sector towards a more entrepreneurial model of business development arising from the sector's legacy of separation and exceptionalism within the support framework. In order to help encourage the development of generic business skills an ‘intermediary’ model of business advice is advocated, in which an intermediary agency acts as a bridge between farms and generic business support providers.
Get full access to this article
View all access options for this article.
References
1.
AudretschD BThurikA K, 1997, “Sources of growth: the entrepreneurial versus the managed economy”, DP 1710, Centre for Economic Policy Research, London School of Economics, London
2.
Bank of England, 1996The Financing of Technology-based Small FirmsBank of England, London
3.
BennettK, 2001, “Voicing power: women, family farming and patriarchal webs” WP 62, Centre for Rural Economy, University of Newcastle upon Tyne, Newcastle upon Tyne
4.
BennettR JRobsonP J A, 1998, “External advice and business links”, in Enterprise Britain: Growth, Innovation and Public Policy in the Small and Medium Sized Enterprise Sector 1994–1997 Eds CoshAHughesA, ESRC Centre for Business Research, University of Cambridge, Cambridge, pp 56–66
5.
BennettR JRobsonP J A, 1999, “The use of external business advice by SMEs in Britain”Entrepreneurship and Regional Development11155–180
6.
BennettR JRobsonP J A, 2000, “External advice and business link”, in British Enterprise in Transition: Growth, Innovation and Public Policy in the Small and Medium Sized Enterprise Sector 1994–1999 Eds CoshAHughesA, ESRC Centre for Business Research, University of Cambridge, Cambridge, pp 77–86
7.
BennettR JSmithC, 2001, “The influence of location and distance on the supply of business advice”, paper presented at 24th ISBA National Small Firms Policy and Research Conference, Exploring the Frontiers of Small Business; copy available from Professor Bennett, Department of Geography, University of Cambridge, Cambridge
8.
BennettR JRobsonP J ABrattonW J A, 2001, “Government advice networks for SMEs: An assessment of the influence of local context on Business Link use, impact and satisfaction”Applied Economics33871–885
9.
BlackburnRCurranJ, 1993, “In search of spatial differences: Evidence from a study of small service sector enterprises”, in Small Firms in Urban and Rural Locations Eds CurranJStoreyJ (Routledge, London) pp 164–193
10.
CarrollTLowePPhillipsonJ, 2002, “Conclusions”, in Confronting the Rural Shutdown: Foot and Mouth Disease and the North East Rural Economy Eds PhillipsonJLowePCarrollT, research report, Centre for Rural Economy, University of Newcastle upon Tyne, Newcastle upon Tyne, pp 153–169
11.
CarterS, 1999, “Portfolio entrepreneurship in the farm sector: Enterprise and employment contributions of farmers in Cambridgeshire”Journal of Rural Studies15417–429
12.
CarterSRosaP, 1998, “Indigenous rural firms: Farm enterprises in the UK”International Small Business Journal16(4) 15–27
13.
CLA, 1997Rural Small Businesses—A CLA Analysis of Support ServicesCountry Landowners' Association; now Country Land and Business Association, 16 Belgrave Square, London SW1X 8PQ
14.
ClarkG, 1991, “People working in farming: The changing nature of farmwork”, in People in the Countryside: Studies of Social Change in Rural Britain Eds ChampionTWatkinsC (Paul Chapman, London) pp 67–83
15.
CoenD, 1998, “European business interests and the nation state: Large firm lobbying in the EU and member states”Journal of Public Policy18(1) 75–100
16.
ColeDMcGuinnessD, 2001, “Reviewing the farm business advice service: Lessons from Cumbria farm link”Regional Studies35873–878
17.
CoombesMRaybouldS, 2001, “Public policy and population distribution: Developing appropriate indicators of settlement patterns”Environment and Planning C: Government and Policy19223–248
18.
Countryside Agency, 1999The State of the CountrysideCountryside Agency, John Downer House, Crescent Place, Cheltenham, Glos GL50 3RA
19.
Countryside Agency, 2002a, Integrated Advice to Farmers and Other Land Managers RN CRN 52, Countryside Agency, John Downer House, Crescent Place, Cheltenham, Glos GL50 3RA
20.
Countryside Agency, 2002bThe Role and Contribution of Women to Rural Economies RN CRN 40, Countryside Agency, John Downer House, Crescent Place, Cheltenham, Glos GL50 3RA
21.
CurranJStoreyJ (Eds), 1993Small Firms in Urban and Rural Locations (Routledge, London)
22.
DanceyR J, 1993, “Evolution of agricultural extension in England and Wales: Some reflections”Journal of Agricultural Economics44375–393
23.
DannreutherC, 1999, “Discrete dialogues and the legitimation of EU SME policy”Journal of European Public Policy6436–455
DEFRA, 2002The Strategy for Sustainable Farming and Food: Facing the FutureDepartment for Environment, Food and Rural Affairs, Ergon House, Smith Square, London SW1P 3JR
26.
DevinsD, 1996, “The use of external advice by new and established SMEs”, in Small Firm Formation and Regional Economic Development Ed. DansonM (Routledge, London) pp 161–188
27.
DTI, 1998Our Competitive Future: Building the Knowledge Driven Economy Cm 4176, Department of Trade and Industry (The Stationery Office, London)
28.
DTI, 1999The Small Business Service: A Public ConsultationDepartment of Trade and Industry, 1 Victoria Street, London SW1H 0ET
29.
DTI, 2002Cross Cutting Review of Government Services for Small BusinessesDepartment of Trade and Industry, 1 Victoria Street, London SW1H 0ET
30.
DwyerJBaldockDBeaufoyGBennettHLowePWardN, 2002Europe's Rural Futures: The Nature of Rural Development. Rural Development in an Enlarging European UnionInstitute for European Environmental Policy, Dean Bradley House, 52 Horseferry Road, London SW1P 2AG
31.
EC, 1996, “Commission recommendation of 3rd April, 1996 concerning the definition of small and medium-sized enterprises”, C(96) 261 final, European Commission, Brussels
32.
EDAW, 1999, “Towards a vision: regional economic strategy for the North East”, ONE NorthEast, Stella House, Goldcrest Way, Newham Riverside, Newcastle upon Tyne NE15 8NY
33.
ErringtonAGassonR, 1996, “The increasing flexibility of the farm and horticultural workforce in England and Wales”Journal of Rural Studies12(2) 127–141
34.
GortonM J, 1997The Growth and Performance of Small and Medium Sized Enterprises in Rural Peripheral Locations unpublished PhD thesis, Plymouth Business School, University of Plymouth, Plymouth
35.
Government Statistical Service, 1999Size Analysis of UK Businesses. Business Monitor PA 1003Office for National Statistics, Cardiff Road, Newport NP10 8XG
36.
GrantW, 1995, “Is agricultural policy still exceptional?”Political Quarterly66(2) 156–169
37.
GrayC, 1998Enterprise and Culture (Routledge, London)
38.
HakimC, 1989, “Identifying fast growth small firms”Employment Gazette January, pp 29–41
39.
TreasuryH M, 1998Financing of High Technology Business: A Report to the Paymaster GeneralHM Treasury, 1 Horse Guards Road, London SW1A 2HQ
40.
HodgeI, 2001, “Beyond agri-environmental policy: Towards an alternative model of rural environmental governance”Land Use Policy18(2) 99–111
41.
HodgsonD, 1993, “UK training policy and the role of TECs”International Journal of Manpower14(8)3–16
42.
JohnsonSSmallboneDFroudM, 1998, “Policy support for established microenterprises: the need for a segmented approach”, paper presented at 21st ISBA National Small Firms Policy and Research Conference: Celebrating the Small Business, Durham, 18–20 November; copy available from Policy Research Institute, Leeds Metropolitan University, Leeds
43.
KeebleDTylerP, 1995, “Enterprising behaviour and the urban–rural shift”Urban Studies32975–997
44.
Lantra, 2001Action Plan for Farming: Skillcheck ReportLantra, Stoneleigh, Kenilworth, Worcs CV8 2LG
45.
LaschewskiLPhillipsonJGortonM, 2002, “The facilitation and formalisation of small business networks: Evidence from the North East of England”Environment and Planning C: Government and Policy20375–391
46.
LowePTalbotH, 2000, “Policy for small business support in rural areas: A Critical assessment of the proposals for the small business service”Regional Studies34470–499
47.
LowePWardN, 1998, “Regional policy, CAP reform and rural development in Britain: The challenge for New Labour”Regional Studies32469–474
48.
McElweeGWarrenL, 2001, “The farmer as entrepreneur: barriers to diversification”, paper presented to Academy of Marketing 6th Annual Research Symposium, Kingston Business School, 10–12 January; copy available from Dr Warren, Management Science and Information Systems Research Group, Business School, Loughborough University, Loughborough, Leics
49.
MAFF, 1998Farm Incomes in the United Kingdom, 1996/7 Ministry of Agriculture, Fisheries and Food (The Stationery Office, London)
50.
ParkerR, 2001, “The myth of the entrepreneurial economy: Employment and innovation in small firms”Work, Employment and Society15373–384
51.
PhillipsonJLowePCarrollT, 2002b, “Confronting the rural shutdown: foot and mouth disease and the north east rural economy”, research report, Centre for Rural Economy, University of Newcastle upon Tyne, Newcastle upon Tyne
52.
PhillipsonJLowePRaleyMMoxeyA, 2002a, “The nature and needs of rural micro-businesses in the north east of England”, research report, Centre for Rural Economy, University of Newcastle upon Tyne, Newcastle upon Tyne
53.
PIU, 1999Rural Economies Performance and Innovation Unit (Cabinet Office, London)
54.
Policy Commission on the Future of Farming and Food, 2002, “Farming and food: a sustainable future”, Report of the Policy Commission on the Future of Farming and Food, http://www.cabinet-office.gov.uk/farming
55.
RaleyMMoxeyA, 2000, “Rural micro-businesses in the north east of England: final survey results”, research report, Centre for Rural Economy, University of Newcastle upon Tyne, Newcastle upon Tyne
56.
RenwickARushCLangB, 2002Study of the Farm Business Advice ServiceRural Business Unit, University of Cambridge, Cambridge
57.
RitchieDAschDWeirA, 1984, “Research note: The provision of assistance to small firms”International Small Business Journal3(1) 62–65
58.
RobsonP J ABennettR J, 2000, “The use and impact of business advice by SMEs in Britain: An empirical assessment using Logit and Ordered Logit models”Applied Economics321675–1688
59.
SBS, 2001UK Paper: Enterprise for AllSmall Business Service, Kingsgate House, 66–74 Victoria Street, London SW1E 6SW
60.
SBS, MAFF, 2001Core Farm Business Advice Service: Scheme Guidance for Business Link OperatorsSmall Business Service, Kingsgate House, 66–74 Victoria Street, London SW1E 6SW, and Ministry of Agriculture, Fisheries and Food, London
61.
Scottish Executive, 2002A National Strategy for Farm Business Advice and SkillsScottish Executive, St Andrews House, Regent Road, Edinburgh EH1 3DG
62.
SmallboneDNorthD, 1999, “Innovation and new technology in rural small and medium-sized enterprises: Some policy issues”Environment and Planning C: Government and Policy17549–566
63.
SmallboneDNorthDBaidockREkanemI, 2002, “Encouraging and supporting enterprise in rural areas. Report to the Small Business Service”, RR 009/02, Small Business Service, St. Mary's House, c/o Moorfoot, Sheffield, S1 4PQ
64.
SmallboneDNorthDLeighR, 1993, “The use of external assistance by mature SMEs in the UK: Some policy implications”Entrepreneurship and Regional Development5279–295
65.
StoreyD J, 1994Understanding the Small Business Sector (Routledge, London)
66.
TanewskiG ARomanoC ASmyrniosK X, 2000, “Determinants of Australian family farm growth: the role of owner characteristics and strategic planning”, Publication 00/131, Rural Industries Research and Development Corporation, Level 1, AMA House, 42 Macquarie Street, Barton, ACT 2600
67.
TurokIRacoM, 2000, “Developing expertise in small and medium-sized enterprises: An evaluation of consultancy support”Environment and Planning C: Government and Policy18409–427
68.
van HuylenbroeckGDurandG, 2003Multifunctionality: A New Paradigm for European Agriculture and Rural Development? (Ashgate, Aldershot, Hants)
69.
WhitbyMTownsendAGortonMParsissonD, 1999, “The rural economy of north east England”, research report, Centre for Rural Economy, University of Newcastle upon Tyne, Newcastle upon Tyne
70.
WilliamsR, 2002, “An investigation of farm business support provision and needs in Teesdale”, MSc dissertation, University of Newcastle upon Tyne, Newcastle upon Tyne
