Rural Entrepreneurship Conference success

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Ron Methorst receiving his award from Jason Beedell of Strutt and Parker
Richard Bryan of Qa Research presents best paper prixe to Lavinia Wilson-Youlden Northumbria University
Richard Bryan of Qa Research presents best paper prixe to Lavinia Wilson-Youlden Northumbria University

Thanks to everyone who participated in a very enjoyable conference in Lincoln.  The quality of papers was very strong and I should especially congratulate Ron Methorst from the Netherlands on winning the best PhD Paper prize  and Lavinia Wilson-Youlden on winning the overall best paper prize.  As a result of the event, we hope to take some of the inspiring stories of community-based entrepreneurship, innovative rural business development and farm diversification to create a showcase to illustrate the massive potential within our rural communities.

To show our commitment to the local rural economy, we also arranged for a special beer to provided by a local start-up microbrewery in Lincolnshire.

Thanks to Horncastle Ales for providing the refreshments!
Thanks to Horncastle Ales for providing the refreshments!

Brexit

The perspective of an “out” voter who seeks positive change for the future

In all of the concerns about Brexit, let’s remember that there has been substantial opposition to the EU for a long time. The founding nations continue to dominate, new nations are allowed in to benefit the EU (even if convergence criteria are not properly met) and struggling economies are propped up to maintain trade and stability for the core nations, not out of a genuine belief on European solidarity.

Most of all, we see politicians disengaged from citizens – where were the messages about what the EU delivers during the campaign to balance the easy criticisms of cost and regulation?  Perhaps it is because the Commission is not accountable to an electorate and because those within the system are quite content with their lifestyles, expenses and belief in the EU project.  From the outside, it appears that this collective belief leads EU representatives to deny or oppose rising Euroscpeticism instead of listening to criticisms.

Therefore, we are now at a moment in history where the next steps are vitally important. The UK needs leadership that is inclusive of many political views. The role of Scottish and Irish representatives will be especially important as the UK needs their voices to be heard in shaping the new political landscape.  The Referendum was not a mandate for a “Brexit government” and to that end I have been very pleased to hear Boris Johnson re-stating his position that Britain must continue to be an important nation within the continent of Europe – just not one that approves of the EU Parliament and Commission in their current form.

I would not extend that inclusivity to Nigel Farage though. His gloating speech in the EU parliament was a national embarrassment.  He won the platform to say something positive about the need for the EU to listen to the citizens and contemplate reform but his attitude overshadowed anything constructive that he might have intended.  He has let down his own voters. Such attitudes are also fuelling a minority of xenophobic Brexit voters and I applaud everyone for standing up against any such intolerance or abuse – although I think it is worth pointing out that a “remain” vote could also have sparked similar reactions among some nationalist factions.

For UK politics, this vote has told us two things. Firstly, politicians should make these complex decisions and not rely on publicity campaigns (of dubious veracity on both sides) to influence an under-informed electorate to make historic decisions.  Secondly, this is proof that a large swathe of the UK population has lost representation in Westminster as well as Brussels, and the referendum offered a 2-for-1 protest vote.  Arguably, ever since Tony Blair courted middle England to win the election in 1997, traditional Labour voters have had nowhere to turn. In Scotland, the SNP have capitalised very effectively on this, as did the Liberal Democrats prior to the Coalition.  And then UKIP’s win in the 2014 European elections still did nothing to change politics, only to deliver us a referendum that Westminster insiders were confident that they could “win” and the thus the whole issue could be swept under the carpet.  The political elite must listen to these votes – it cannot be blamed on a handful of extremists but this is part of a longer term trend of dissatisfaction with politics today.

What could Brexit mean for rural businesses?

I should begin this post by stating that I was genuinely undecided right to the last minute but I voted “leave” on the basis that I feel our economy can prosper outside of the EU. Whether that was a wise decision will depend upon our political leaders’ responses and the actions of our businesses.  I should also add that this is a personal view and not necessarily the view of Lincoln International Business School.

So what opportunities are there for small rural businesses outside of the EU?

We have over 50% of the country who are willing to risk the economy to express their nationalistic views. With less than 12% of all UK business engaged in exporting, this could be seen as a real opportunity to promote “Buy British” and “Buy Local”.

If Sterling continues to fall, UK output will also be more competitive on world markets – especially those outside of the EU given that the Dollar has appreciated more strongly than the Euro. We already trade more profitably with the rest of the world so this gives businesses the opportunity to explore new niche markets and build relationships with emerging global powers.  For this to succeed, we need trade leaders to promote UK plc, to negotiate strong trade deals and to provide the right investment to support innovations and infrastructure.

Businesses will still have to comply with international and EU legislation for trading standards if we want to export but if you are not an exporting business, some of the red-tape should be removed by the UK government – although we will need strong lobby groups to make sure that this happens.

Farmers: it is unrealistic to expect the same level of subsidy outside of the EU. For tenant farmers, this could help to push for reductions in rents. For all farmers this should encourage strategic reviews of their activities.  Look at the New Zealand scenario since the removal of subsidies – they have a lot of enterprising rural business people combining food production with a range of other profitable activities.  The shock of subsidy withdrawal was not pleasant, but we have time to plan for a gradual reduction of subsidies and we can lobby for subsidies to be targeted towards those farm activities and products that are most in need of support.

More broadly, we need to lobby to retain a rural economy support programme but it is not hard to imagine that we can design something better than the European LEADER programme which is poorly resourced, bureaucratic and little known across rural England.

None of this will be easy, but anyone who has studied business, and especially Joseph Schumpeter’s theories of creative destruction, will know that change and uncertainty creates new spaces for innovation and new business opportunities. The challenge is to be a pro-active “creator” as those lagging behind the curve could face “destruction”.   And a free business idea for everyone – who will set up the first “Brexit Strategy Consultancy”?!!