Generational renewal in rural businesses: empowering youth, supporting elders

Objectives 

Background 

Generational renewal is a pressing issue for rural areas across Europe, facing depopulation, the outmigration of young people and an ageing population affecting both the economy and the fabric of community life. Rural regions are particularly exposed to the departure of young and qualified workers, while older generations often face difficulties in transferring businesses and knowledge to successors. 

Agriculture, forestry and fishing represent around 11% of employment in predominantly rural regions, while most jobs and businesses are found in sectors such as services, tourism, manufacturing and local SMEs². The vitality of rural economies therefore increasingly depends on the transfer, creation and development of businesses beyond agriculture. 

In response to demographic decline and the loss of skilled workers in many regions, the European Commission has developed a Demography Toolbox, which includes targeted support for regions facing talent shortages. As part of this, the Talent Booster Mechanism has supported selected  regions in fostering entrepreneurship, skills development and innovation ecosystems to help attract and retain young professionals. 

The European Commission’s Strategy for generational renewal in agriculture acknowledges that these demographic challenges extend beyond farming. It calls for a comprehensive, multi-dimensional approach to improving rural living conditions. It focuses on offering not only agricultural opportunities but also diverse employment prospects, accessible infrastructure, and essential public services like healthcare, education, and childcare. By diversifying income sources and creating off-farm job opportunities, the strategy aims to make rural areas more attractive and stable for all generations.  

This territorial dimension is also emphasised in the European Commission’s Strategy on intergenerational fairness which highlights that disparities between regions – particularly between urban and rural areas – can reinforce inequalities between generations. Addressing these territorial gaps and ensuring ‘fair places’ is therefore key to enabling both younger and older generations to remain active and engaged in rural communities.