Local Rural Labour Markets: Enterprising or Constraining?

Abstract

This paper examines SMEs’ experiences of labour markets and their adoption of technology, including ICTs, in two rural areas: South Warwickshire and North Devon. Findings are assessed within the context of existing theories of rural industrial growth, which have tended to stereotype firms on the basis of location, and have underplayed the role of ‘non-local’ factors such as supply chains in influencing both the behaviour and ‘success’ of individual SMEs. In contrast, this paper contends that understanding the true complexity of the SME sector is essential if efforts to foster and support enterprise in rural areas are to be successful.

Notes

¹ The phrase Post-Productivist Transition (PPT) has been used as convenient shorthand to describe multiple and complex processes of agricultural restructuring. It is said to be characterised by low input–low output farming, an emphasis on environmentally sustainable production, food quality and the integration of agriculture within broader rural economic systems (Lowe et al ., 1993; Bowler & Ilbery, 1993; Ilbery & Bowler 1998).

² The most recent Annual Business Inquiry (ABI) data released by National Statistics are for 2003. However, from 2003 onwards ABI data for aggregate areas are based on 2003 CAS wards, differing from previous years, which were built from 1991 census wards. This will give rise to discontinuities when comparing 2003 data with earlier years. In addition 2003 ABI data are based on the Standard Industrial Classification (SIC) 2003 which again differs from previous years, and may give rise to further discontinuities. For these reasons, this paper uses 2002 data as the most recently available, allowing reliable time series information to be presented.

³ Manufacturers who participated in the in-depth qualitative interview phase of the research were identified in collaboration with local stakeholders and were selected on the basis of their record of product and/or process innovation. Companies were drawn from a range of manufacturing sub-sectors including clothing and textiles, mechanical and electrical engineering, plastics, transport equipment and wooden products.

⁴ In South Warwickshire a population of manufacturing SMEs was drawn from the ‘LINKTRACK’ database maintained by the Coventry and Warwickshire Chamber of Commerce. In North Devon, company names and addresses were obtained from the joint District Council and local Chamber of Commerce business directory and from the countywide database of businesses held by Business Link Devon and Cornwall. However, owing to the smaller overall population of firms in North Devon, it was necessary to supplement information obtained from these sources through physical reconnaissance.