Insights into business dynamics in rural regions: new JRC report
A new analysis from the European Commission’s Joint Research Centre (JRC) sheds light on persistent gaps and emerging strengths in rural entrepreneurship across the EU, revealing that it has significant potential if supported by integrated, place-based policies.
Image by Chuancai on Canva
The brief confirms that while rural areas lag behind in firm creation, start-up activity, and high-growth businesses compared to urban counterparts, there are success stories where rural territories are harnessing sectors beyond traditional agriculture, moving into knowledge-intensive and diversified economic activities.
For rural development actors, such as local authorities, business support organisations, and regional policymakers, the findings underscore the need for place-based policies tailored to local contexts. Interventions should aim to close urban-rural entrepreneurship gaps, encouraging growth in green tech, digital services, and innovation clusters, not only in traditionally rural sectors.
Additionally, the publication highlights the importance of strengthening ecosystem enablers: better access to finance, mentoring, networks, infrastructure, and education or training geared toward rural realities. These are essential to empower rural areas to become engines of competitiveness, resilience, and inclusive growth in the EU.
Explore the latest Rural Pact resources on the topic of rural entrepreneurship.