Viable Business Models for Rural Social Enterprises

The webinar attracted close to 80 registered participants from 8 countries across Northern Europe. Participants represented a wide range of professional backgrounds, including social entrepreneurs, business advisors, regional and municipal civil servants, researchers, and organisations working with advisory services and investment in the social economy and rural development.

The webinar was hosted by Steinunn Ása Sigurðardóttir from Vestfjarðastofa, Iceland. She framed the session by highlighting the importance of international knowledge exchange on social entrepreneurship in sparsely populated and peripheral regions – areas where entrepreneurs, policymakers and support organisations can otherwise easily feel isolated in their work.

Yvonne von Friedrichs and Cecilia Dahlborg from Mid Sweden University introduced the work within the MERSE project to strengthen social enterprises in the Northern Periphery and Arctic region. The project combines mapping of rural conditions with capacity building and a leadership programme in which social entrepreneurs are trained as facilitators for others.

Cecilia Dahlborg introduced the concept of social business models and pointed to common rural challenges such as depopulation and limited labour markets, as well as the potential of social enterprises to address these challenges. She also showcased MERSE’s ongoing work on a new business model framework specifically designed for rural social enterprises.

The webinar then moved on to perspectives and stories from rural Northern Europe, offering several key insights for participants:

• Business models are shaped by place. Social enterprises in rural areas need business models that build on local resources, relationships and small-scale markets, rather than relying on standardised solutions.
  
• Policy and regulations shapes what is possible. Arnar Sigurðsson from East of Moon showed how social innovations can fill important gaps in local communities, but often only become economically viable when supported by appropriate policies and regulatory frameworks.
  
• There is no single business model. Jarmo Hänninen from the Finnish Centre of Expertise of Social Entrepreneurship emphasised the need for tailored support. Business advice and models must be adapted to each enterprise’s purpose, maturity and context.
  
• Unconventional business logics require clear explanations. Hildur Dagbjört Arnardóttir from Gróandi Community Supported Agriculture described how community-funded models can create strong local engagement, but also require clear communication to build understanding and trust around alternative business logics.

Representatives from the Norwegian social enterprise Jobloop demonstrated how close cooperation with the public sector has been crucial for scaling their operations, reaching more young people, and maintaining their social mission.

The webinar was aimed at anyone working with, or interested in, social entrepreneurship and rural development. Participants particularly appreciated the combination of current research, reflections on policy, and practical examples, which offered a broader understanding of how sustainable business models for social enterprises can be shaped in rural environments.

In closing, the discussions were linked back to MERSE’s continued work and resources – and to the shared insight that viable rural social enterprises emerge through interaction between entrepreneurs, local communities, support structures and political decision-making.

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