Enhancing Entrepreneurship in Rural Areas through Local Food Systems

Despite their relatively low proportion of total agricultural output, Local Food Systems (LFS) are growing in popularity worldwide. Research demonstrates that LFSs directly contribute to regional employment, more diverse local food production and healthier eating habits.

Despite these encouraging trends, local food producers experience significant adjustment problems when pursuing new business opportunities. As a result, improving the conditions for the development of local food production is crucial to enhancing entrepreneurship in rural and peripheral areas. In addition, this project also recognizes that LFSs provide benefits that go far beyond the economic value of food production and processing, which, in turn, supports the practice of entrepreneurship in rural and peripheral
areas.

In Sweden, as in other countries, the food sector is a core business sector for the entire economy. It mostly consists of smaller businesses, with around 40% of its employees working in micro businesses. A recent international comparison revealed that the Swedish food sector trails other countries in terms of innovation, which indicates a growing need for new research on small businesses and entrepreneurship in the sector. Even if major companies are generally more effective in economic terms, small companies are important because they help to diversify the market while providing important opportunities that underpin LFS in rural areas. Based on this background, the purpose of this project is to enhance a transformative entrepreneurship in rural areas through LFSs.