Rural Scotland People, Prosperity and Partnership
Encouraging EnterpriseThe principal vehicles for the encouragement of economic activity in rural areas are the enterprise networks of 22 local enterprise companies covering the whole of Scotland. From the point of view of rural communities, the key aspect of local enterprise companies is their local character. Although, as a network, they have the powers, skills and financial muscle of a national development agency, they are individually able to respond to local needs in a flexible and responsive way and to deliver individually tailored packages of economic development, environmental improvement and training services to match the varying economic needs of rural areas. The local enterprise companies, and their parent bodies Scottish Enterprise and Highlands and Islands Enterprise, work in partnership with other bodies, agencies and local government to encourage the involvement of all parts of the community in the task of economic regeneration. The achievements of the Cowal Initiative, the Rural Stirling Partnership, the Angus Glens Initiative and many similar ventures involving the local enterprise companies demonstrate that a commitment to this partnership approach is a critical factor in achieving success.
From this established basis of local decision making and partnership with others, the Enterprise networks will continue to promote the development of rural areas. For example, targets for Highlands and Islands Enterprise in 1995-96 include:
creation or retention of 900 indirect jobs;
555 businesses committed to achieving Investors in People;
a continuing increase in the proportion of trainees achieving a recognised qualification. Many of the development opportunities in rural areas arise from the quality of the environment. The Enterprise networks have powers to promote and support environmental renewal which can be instrumental in preserving and strengthening this source of competitive advantage. Scottish Enterprise, Highlands & Islands Enterprise and their networks of local enterprise companies are also in a position to ensure that opportunities are exploited in a way which is sensitive to the local environment and that the economic development generated is sustainable.
Backing WinnersWhile the enterprise networks offer the primary route for encouraging economic development, other bodies have an important role to play. Local authorities have their own functions in economic development, as well as being the principal providers of supporting infrastructure. National agencies, such as Scottish Homes, Scottish National Heritage, and now the Scottish Environmental Protection Agency also have an important role to play. Given the importance of tourism in rural areas, the Scottish Tourist Board and the area tourist boards have much to contribute to that industry. The European Structural Funds also play an important part in the financial underpinning of public sector development and training. Finally, and perhaps most importantly, the voluntary sector, including such bodies as enterprise trusts, is a significant means of delivering some of the services of local enterprise companies. The local enterprise companies and their parent bodies, Scottish Enterprise and Highlands and Islands Enterprise, work in partnership with other parts of the public, private and voluntary sectors to encourage the involvement of the whole community in the task of economic regeneration. There are many examples which show how economic development in rural areas has been stimulated by the enterprise networks, operating in co-operation with the private sector; and demonstrating that the economic potential of rural areas extends beyond traditional industries and traditional methods of working.
Teleworking and Out-sourcingIn 1989, Highlands and Islands Enterprise joined British Telecommunications plc in a major collaboration to bring state of the art telecommunications facilities to all parts of the Highlands and Islands area, in the forefront of the United Kingdom installation programme. Highlands and Islands Enterprise contributed £5 million to a £20 million investment. The telecommunications infrastructure of the area is now based an integrated services digital network providing high speed and high integrity digital data communications services, together with computer facilities which provide an access network for local, national and international services at local call rates. This has encouraged the establishment of a range of jobs based on information technology. BT itself has established a computer help desk at Thurso, employing more than 70 people to provide a range of telephone services to subscribers throughout the United Kingdom. Similarly, Hoskyns has a business process out-sourcing centre, which will eventually employ 200 people to undertake administrative operations (such as council tax claims or parking fines) for distant local authorities. The underlying principle is that modern information technology and telecommunications have removed the need for many contemporary office operations to be undertaken in conventional urban locations. Business process re-engineering and electronic work flow techniques enable complex and discretionary tasks to be handled through distributed networks. This opens up an exciting range of options, from individual home-working, to directly managed local work centres, to remotely located facilities managed by contract suppliers of administrative services. The distinctive circumstances of the Highlands and Islands, where less than 7% of Scotland's population live in an area covering half her land mass, means that Highlands & Islands Enterprise has additional powers to assist social development projects which help maintain and enhance rural communities. In 1994-95, Highlands & Islands Enterprise supported over 300 such projects through Community Action Grants. The projects include support for a wide range of cultural activities as well as the development of community facilities, such as swimming pools, sports clubs and village halls. As with its other activities, Highlands & Islands Enterprise gives the highest priority to fragile, remote areas. It is the capacity to combine this kind of support with assistance to employment creating business projects and support for access to modern telecommunications infrastructure which has enabled Highlands & Islands Enterprise to promote the advantages of modern technology and traditional values in support of its rural areas.
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