As someone who has spent considerable time working within the rural economy of Wales, I often find that people have a narrow perception of what that term really means.
When most people hear “rural economy,” they immediately think of agriculture, and understandably so. With nearly 60,000 people employed in the agricultural sector in Wales, it is undeniably important.
However, I believe we need to broaden our understanding of the rural economy to reflect the reality on the ground. It is far more diverse than we think.
When we look at the Index of Multiple Deprivation, it’s clear that much of Wales is classified as rural, from the farmlands of Pembrokeshire to the mountains of Snowdonia.
Sectors such as food and drink, tourism, and even the creative industries, are vital to the economic lifeblood of these regions. Take tourism, for example. The breathtaking landscapes of Wales, our rich history, and our cultural festivals attract millions of visitors each year, injecting money into local businesses, creating jobs, and sustaining entire communities.
The food and drink sector is another area of growth that we’ve seen in recent years. Welsh produce is gaining an increasingly strong reputation, not only across the UK but also globally.
The quality of our meat, dairy, and artisan food products is now being recognised far and wide. This sector alone contributes a significant amount to the rural economy, offering opportunities for businesses to thrive in what may seem like remote areas.
But perhaps one of the most surprising areas of growth is in the creative industries. In places like Caernarfon and Carmarthen, we’ve seen businesses involved in film, media, arts, and design flourish. It’s easy to overlook these types of businesses when thinking about rural Wales, but they play a crucial role in diversifying the economy and offering younger generations new avenues to explore.
I think it’s also important to recognise the backbone of the rural economy – small businesses and sole traders. In rural Wales you’ll find a high number of SMEs, often run by individuals or families, which are integral to their communities. These businesses may be small in size but collectively they make a significant contribution. From local cafés and tradespeople to digital entrepreneurs working from home, these enterprises are what keep many of our rural communities vibrant and resilient.
The challenges these businesses face can be substantial. Rural infrastructure, particularly in terms of digital connectivity and transportation, often lags behind urban areas. But despite these challenges, I’m constantly inspired by the adaptability and innovation of rural businesses.
Many are using technology to overcome these barriers, opening online stores or expanding their services beyond local areas. The entrepreneurial spirit in rural Wales is alive and well, and it’s critical that we continue to support these businesses if we want the rural economy to thrive.
At Mentera, we’re always conscious of the need to take a holistic approach when talking about rural economies. We cannot afford to view it through the lens of agriculture alone. Of course, farming will always be central to rural life in Wales, but it’s just one part of a much wider picture. The diversity of sectors in rural areas is a strength, and we must ensure that our policies and strategies reflect that.
So, when we talk about the rural economy in Wales, let’s remember that it’s not just about farming. It’s about local communities, creative industries, small businesses, and the vast potential that exists in every corner of our beautiful country.
By supporting these diverse sectors, we can ensure that the rural economy continues to flourish in the years to come.
