Relevance of entrepreneurial skills for rural and regional development

So far we have described the diverse and even controversial ways in which concept of entrepreneurship is addressed and applied in the scientific community. We have also argued that the concept of entrepreneurial skills has advantages compared to the personality traits concept. At this point we would like to emphasise once again the advantages of using the concept of entrepreneurial skills. On the one hand, it is a very straightforward concept which has clear definitional bounds (as defined in our study). On the other hand, it is so broad that the above mentioned diversity of entrepreneurship concepts can be accommodated within it. Regardless of the framing of entrepreneurship, be it the neoliberal point of view or the point of view of eco or social entrepreneurship, the concept of entrepreneurial skills can be used. The skills which have been defined in our study are necessary for all these kinds of entrepreneurship.

In conclusion, if the skill concept is emphasised rather than diverse concepts of entrepreneurship, certain debates will be easier to navigate and different framings no longer pose a major problem. At the level of applicability for policy aims as well, we argue that the skill concept is valuable because it contributes to rural as well as to regional development by stimulating business development in the farming sector. This business development will have several features, varying from large-scale production farms to multifunctionality, as well as innovation and emerging new markets. This all contributes to rural and regional development by strengthening the rural economy. These aspects are discussed especially here, because they demonstrate the link between the entrepreneurial skills concept and other ongoing EU-funded projects.

Innovation:

Innovation can be defined as a driving force for economic development and growth. Equally, innovation can be seen as a way of doing something, as Vesala describes it (Vesala, 2008). Either way, however, to be able to act innovatively or generate innovation, certain skills are needed. This also emerges as one outcome of the EU-funded research project IN-SIGHT. This project examines the dynamics of innovation processes in rural areas. One outcome is the description of transition processes from the stage of innovation through to a niche product and further to the established product. However, the starting point for their work is the already existing innovation; what has not been studied is how the idea for the innovation emerges and how this first idea is put into practice in order to actually create an innovation (Brunori et al. 2007) Here, the contribution of the skill concept becomes obvious, as business opportunities and innovations are overlapping issues. Of course, not all business opportunities are innovations and not all innovations are business opportunities, but the connection is evident. Therefore, having the skill of finding and realising business opportunities (as well as the other entrepreneurial skills) can be seen as a strong stimulus for innovation.

Emerging new markets in rural areas:

Due to the differentiation process in rural areas connected with multifunctionality, new consumer demands and changing market conditions, new chain-partnerships, collaborative projects and marketing opportunities are emerging. According to the EU-funded research project COFAMI (personal notification of H. Renting), new relations with these new markets are increasingly important. The capacity to construct relevant networks and build social capital seems to be crucial in these circumstances. It seems logical, therefore, that entrepreneurial skills, especially the skill of networking and utilising contacts, but also others, can operate as a stimulus for building new relationships, for better handling these relationships and also for recognising the importance of these new market opportunities for one’s own success and development. We should also remember that entrepreneurial skills as defined in this study are complex skills, incorporating other, lower level skills. Networking skills, for example, also include teamworking or communication skills, strategy skills encompass skills to do with reflecting, and so forth – all of which are necessary and useful for building the required social capital in new markets.

In this section, the relevance of the concept of entrepreneurial skills for rural and regional development was demonstrated by highligthing the contribution of entrepreneurial skills for innovation and emerging new markets. This is shown in Figure 6.