Rural firms ‘could add billions to economy’ if digital is embraced

Technology: Connectivity is key claims new report

Rural businesses could add billions to the economy if they are given the tools to embrace digital technology, according to a report.

Greater adoption of digital tools and services by rural firms could add between £1.2 billion and £2.5bn to Gross Value Added (GVA), according to Scotland’s Rural College (SRUC) and Rural England.

The report says this is on top of more than £30bn GVA which Scotland’s rural economy already contributes in the UK.

Analysis published today also says at least £1.44bn could be added to Scotland’s rural business turnover.

Doug Gurr, UK country manager for Amazon which commissioned the report, said: “Over the past 20 years, we’ve seen opportunities for rural entrepreneurs transformed through e-commerce, better delivery services and growing access to fast broadband.

“But as today’s report shows, there’s much further to go before anyone can say the rural-urban divide has closed.

“Embracing digital technology not only benefits the economy; it also allows rural communities to combine great quality of life with access to global opportunities.”

The report found south-west, eastern and south-east England, which have the largest share of rural businesses in the UK, would benefit most from greater digital adoption. Scotland accounts for 9.6% of all rural businesses which could boost its rural economy if owners were able to access reliable broadband.

Dr Jane Atterton, of the Rural Policy Centre at SRUC, said: “Rural Scotland is home to a significant number of businesses. For the vast majority of these, access to reliable, quick broadband is crucial for sustainability and growth.

She added: “With the right kinds of support, our report suggests that there could be a substantial economic boost, not to mention the positive impact on the sustainability of communities including the most remote rural areas.”

To unlock the billions of pounds from greater digital adoption in rural areas, Rural England and SRUC suggests recommendations for the public and private sectors.

They include streamlining digital support services and establishing digital enterprise hubs in rural towns which businesses can use or visit for better connectivity.

Access to reliable, quick broadband is crucial for sustainability and growth. DR JANE ATTERTON

Access to fast broadband could unlock potential for rural entrepreneurs.