While rural businesses face some unique challenges due to their location, such as limited labor pools and accessibility issues, the study found that take-up of national business and skills support programs does not significantly differ between rural and urban businesses. Rather, factors like business size, sector, and age are stronger predictors of whether a business accesses support. Awareness and use of different programs varied some by location, but patterns were largely driven by characteristics other than being rural. To improve take-up for all businesses, support programs should be proactively marketed, have simple application processes, minimize costs, and leverage local networks and champions.

1. the institute for employment studies
Access to national skills and
business support programmes
among rural businesses
Jim Hillage

2. Introduction
 Defra/BIS study about access to business support
● Reviewed the literature
● Analysed relevant surveys :
 Small Business Survey (SBS)
 Employer Perspectives Survey (EPS)
● Examined programme admin data
● Interviewed stakeholders and employers
 UKCES study about approaches to training and
recruitment:
● Employer Skills Survey (ESS) and EPS

3. National support provided by government
Source: IES, 2013: Government support for SMEs (BIS 2013)
Sector
Performance
Size
RDPE
Targeted support
Generic support

4. What we found: headline results
 No evidence that rural businesses are less
likely to access national support programmes
than businesses from urban areas
 Take-up does vary by location but the driving
factors are business size, sector and age
 However access (for all businesses) could be
improved

5. Rural businesses are different, but face
similar challenges to urban businesses
 Rural businesses are more likely to be:
● Smaller – lots of sole traders
● Based in land-based, retail, construction
or professional sectors
 More rural employees work in SMEs
● Higher proportion of operatives employed
in rural areas and a lower proportion of
professional and admin staff

6. Take-up of business and skills support is
generally low
 Not all employers need help
 Not all employers who do need help know what
is available
 Need for better (tailored) information
 Employers can be deterred from applying for
support by the concerns about the application
processes and eligibility criteria.

7. Awareness and take-up of different
support programmes varies
 Compared with urban businesses, rural businesses are:
● More likely to be aware of and sought help from Business Link
● More likely to have contacted professional bodies, local authorities and
learning providers
● Just as likely to have tried to access financial support and more
successful in obtaining it
● Slightly more likely to provide external training
● Less likely to be IIP accredited
● Less likely to be aware of the Work Programme and other labour market
policies
 However patterns of awareness and access largely driven by
size, sector and age rather than location
● New firms and larger firms more aware of sources of business support
● Rural businesses more likely to be successful in applying for funding
● Rural business more likely to seek advice on e-commerce and technology

8. UKCES study found similar results
 High incidence of hard-to fill vacancies in rural
areas – but explained by size and type of
business rather than being urban or rural.
 Rural business tend to have a more informal
approach to training
● Less likely to plan or have a budget
● More likely to use FE colleges than urban
businesses
● Less likely to train for qualifications

9. Needs for rural businesses
 Limited labour pool
 Accessibility
● Transport – travel to work or training
● Access to broadband
● Access to networks
 Otherwise similar needs to other businesses:
● Level of demand
● Access to finance
● Coping with regulations
● Employment, premises and other costs

10. Factors affecting access to business support
Take-up of
Support programmes
Programme
Design
Programme
Eligibility
Application
Process
Marketing
Size Sector Age

11. Factors affecting access to business support
Take-up of
Support programmes
Programme
Design
Programme
Eligibility
Application
Process
Ensure
quick return
Keep
it simple Minimise
cost
Make
it savvy
Monitor by
location
Segment
the offer
Personal
approaches
Marketing
Size Sector Age

12. What can be done to improve take-up
among rural AND urban businesses
 Proactively seek to provide likely businesses with support
● Tailor offers to segmented sectors
 Personal approaches more effective than anonymous on-line methods
● Or use trusted intermediaries
 Ensure a quick return
● Emphasise opportunity cost
 Minimise cost of access
● Make the rules simple to understand
 Keep choice to a minimum, to make it easier to ‘go with the flow’
 Tap into local networks
● Indentify local champions
 Present those who do access support as being ‘on the ball’ and ‘in the
know’
 Regularly monitor take-up by locality

13. … thank you
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