Private

FS 3.196

The role of SMEs in mountain areas

Details

  • Full Title

    FS 3.196: Mountain diversities for shared innovative solutions: The role of SMEs for sustainable and resilient development in mountain rural areas
  • Scheduled

    TBA
  • Location

    TBA
  • Assigned to Synthesis Workshop

    ---
  • Thematic Focus

    Economy, Policy, Sustainable Development, Tourism
  • Keywords

    socio-economic development, smll rural businesses, social innovation

Description

Socio-economic development in mountain areas is often characterized by negatively connotated conditions such large distances, low population densities accompanied by a shrinking and ageing population or challenges in service provision leading to reduced economic opportunities. The main focus when looking at economic activities in mountain areas often remains on a few branches or sectors, such as agriculture, forestry, construction or tourism and on the conservative approach and localism of local population. However, this perspective overlooks the diverse and innovative approaches of SMEs that thrive under specific contextual conditions. Furthermore, the economic diversity of businesses in mountain areas is broader than one may expect at first glance, considering in particular small businesses who generate local employment and supply products and services that sustain daily life of the area itself but also contribute to mountain-plain/ rural-urban nexus. This Focus Session encourages presentation that focus in particular but not exclusively on:

  • Innovative approaches to stimulate entrepreneurship in different sectors of the economy
  • The role of youth, newcomers and female entrepreneurship to maintain socio-economic resilience of mountain areas
  • ‘Creative conflicts’ showcasing good examples and challenges that SMEs face
  • The role of small businesses in the mountain-plain/ rural-urban nexus to foster (neo-)endogenous development in mountain areas

Aim: to showcase critical contributions on the role of SMEs in creating sustainable livelihoods in rural mountain areas, addressing key mountain related challenges and fostering socio-economic diversification.

Submitted Abstracts

ID: 3.5081

Making Rural Development More Participatory: Possible Lessons from SNAI and LEADER Approaches

Andrea Di Bernardo

Abstract/Description

The contribution stems from research on the participatory components of local development policies, offering a comparative qualitative analysis of two key approaches: the co-design process of the National Strategy for Inner Areas (SNAI), the LEADER approach, and the EVV LAG in Piedmont. While sharing the common goal of revitalizing rural and marginal areas, these strategies differ in how they engage local communities and stakeholders: SNAI emphasizes co-design with authorities, actors, and local communities to address socio-economic challenges, while the LEADER approach adopts a bottom-up model, involving local actors through the territorial animation activities of the LAGs. Through this comparative analysis, which employs qualitative and ethnographic methods, the research evaluates the strengths and limitations of each approach, particularly in terms of participatory mechanisms and stakeholder involvement. Although SNAI has contributed to defining marginality based on a citizenship rights deficit (De Rossi, 2018), the introduction and novelty of the participatory component of the policy expressed through the co-design process with ‘local innovators’ in the territories, in some areas, failed to pay particular attention to the conditions of young people residing in inner areas or to involve them in the formulation of the Area Strategies. Specific attention is addressed to the Grand-Paradis Inner Area in the Aosta Valley, where the participatory methodologies used to engage stakeholders during the co-design phase of the SNAI Strategy were analyzed, as well as the territorial animation actions of the EVV LAG in Piedmont. Finally, the contribution proposes a ‘creative strategy’ to encourage young people to think about the local development of their territories and the opportunities for local development offered by actors such as the LAGs.

ID: 3.11048

Understanding and Enhancing the Visibility and Diversity of Small Rural Businesses

Daria Ernst
Machold, Ingrid; Schroll, Karin

Abstract/Description

Small Rural Businesses (SRBs) play a crucial role in fostering socio-economic resilience and regional development in rural areas. Despite their significance, SRBs often remain underrepresented in regional decision-making processes and economic development strategies. This presentation showcases a study conducted in the mountainous region Nockregion-Oberkärnten (Austria) as part of the ongoing HEU project RUSTIK, aimed at enhancing the visibility of SRBs in regional development processes.
The term “visibility” in this context encompasses multiple dimensions: spatial recognition, awareness-raising about SRBs’ role in the region and strengthening their presence in local governance. With SRBs making up 99% of all businesses in the Nockregion—a trend reflected across Austria—they serve as the economic backbone of the region by providing a diverse range of products, services, and employment opportunities, contributing to the region’s attractiveness. Nevertheless, small businesses usually face challenges such as low awareness about the regional products and services, competition from online trading, unoccupied positions, succession, affordable renting, and time constraints that hinder SRBs from addressing operational challenges effectively.
To gain a comprehensive understanding of SRBs’ role and challenges, we employed a mixed-method approach combining quantitative and qualitative data sources, including statistical datasets, spatial data, regional mapping workshops and an online survey. This cross-sectoral methodology provided a holistic view of business distribution, sectoral diversity and their perceived challenges.
Our findings reveal that integrating diverse data sources deepens the understanding of municipal economic patterns and sectoral diversity in the region. The study has stimulated increased interest among municipal leaders in supporting SRBs, and builds the foundation for further activities strengthening the role of SRBs in regional development, striving to contribute to shaping policies that better address the needs of SRBs, ultimately fostering more sustainable and resilient mountain communities.
This presentation will provide an overview of the research methodology, key results—including survey findings, spatial data analysis, and the SRB landscape—and discuss how these outcomes can contribute to more inclusive and effective regional development strategies.

ID: 3.12824

Exploring territorial development of Central Balkan mountain area in Bulgaria through understanding SMEs business models

Petya Slavova
Denisova, Nina

Abstract/Description

The aim of the paper is to explore SME business models and their impact on the territorial development of mountain areas in three Central Balkan municipalities in Bulgaria. On one hand, SMEs in this area face various challenges such as population loss, remoteness and lack of good transport infrastructure. A significant share of the informal economy, administrative burdens to obtain political support and a lack of resources (labour), as well as low culture of cooperation and a general mistrust, further hamper their development. On the other hand, the three neighboring municipalities of Troyan, Apriltsi and Ugarchin are all part of the Central Balkan mountain area, but the area experiences different territorial challenges and does not represent a homogeneous mountain territory. SME business models, which mainly operate in places that have been left behind (Pike et al. 2023), support a more exogenous territorial development (Ugarchin). Others that operate in tourist mountain areas (Apriltsi) support more endogenous development (Gkartzios & & Lewis, 2019). There are also those that operate in small rural towns, bridging the rural-urban nexus and thus leading to more balanced neo-exogenous or nexogenous effects (Troyn) (Bock, 2016). This study aims, first, to identify types of business models developed by SMEs operating in different sectors in the three mountainous areas of the Central Balkans and, second, to understand how these business models affect territorial development in these regions. Our overall conceptual aim is to link the literature on business models (Leeuwen, E.S. & Nijkamp, P. (2006)) with that on territorial development (Gkartzios & & Lewis, 2019) to understand how they affect each other. The analysis is based on primary qualitative and quantitative data as well as secondary data collected in the framework of the Horizon Europe RUSTIK project.

ID: 3.12860

Multifunctional Forestry in Transition: Challenges and Opportunities for Small Enterprises in LAG MontagnAppennino.

Mirta Sutter
marovelli, brigida; matteucci, daniele

Abstract/Description

The Local Action Group (LAG) MontagnAppennino, within the RUSTIK Living Lab framework, explores the role of small and medium-sized enterprises (SMEs) in fostering sustainable forest management in the Garfagnana and Media Valle del Serchio regions. With 88% of the area covered by forests, this mountain region faces multiple challenges, including land abandonment, fragmented governance, limited economic diversification, and underutilized forest resources. However, SMEs, cooperatives, and community-led initiatives are proving instrumental in addressing these issues by generating local employment, fostering innovation, and enhancing ecosystem services such as carbon sequestration, biodiversity conservation, water regulation, and climate mitigation. To address data fragmentation and governance gaps, the Living Lab conducted an extensive data experiment, integrating geospatial mapping, stakeholder engagement, and local datasets. This approach provided critical insights into forest functions, economic opportunities, and policy needs. Key findings include: • Persistent challenges in coordination and innovation due to complex regulations, fragmented property ownership, and a lack of updated forest management data. • A growing interest in sustainability credits, beyond traditional carbon credits, as an innovative mechanism to incentivize ecosystem services and forest conservation. • The significant potential of forest-based enterprises in driving economic diversification, particularly in timber production, biomass energy, eco-tourism, and non-wood products (e.g., chestnuts, mushrooms, truffles). • The need for stronger collaborative governance models, such as forest consortia and cooperative management, to improve resource management and access to funding. The Living Lab experience highlights the importance of multifunctional forestry in balancing economic, social, and environmental needs. This contribution demonstrates how integrated policy frameworks, enhanced data accessibility, and SME engagement can transform forest-dependent mountain economies, fostering resilience, sustainable livelihoods, and stronger rural-urban linkages. This research underscores the importance of multi-stakeholder cooperation in leveraging forest resources for regional development, offering replicable strategies for other mountainous areas facing similar socio-economic and environmental challenges.

ID: 3.14061

Development of SMEs in mountain areas of a Southern Italian region: analysis and drivers.

Dario Antonino Musolino

Abstract/Description

This paper focuses on the economic system of a mountain area of a lagging region: Aspromonte, in Calabria (Italy). Aspromonte is a mountain area with a low level of economic development, i.e. with an underdeveloped productive fabric. Many causes might explain the lack of economic development in this region.
We examine the case of Aspromonte focusing on the analysis of the firms established there, based on quantitative desk data and qualitative findings coming from field investigations. We will try to conduct both a descriptive and an explanatory analysis of the trends and the current level of economic development of this mountain area. However, although the several weaknesses, our analysis shows also that this mountain area has many strengths which make a considerable potential for future development.