Entrepreneurship on islands and other peripheral regions. Study

The aim of this study was to analyse the particular challenges and obstacles faced by entrepreneurs and Small and Medium-sized Enterprises (SMEs) on islands and in other peripheral areas, including inner peripheries, when starting up and running a business.

It identified and analysed good practices to foster resilience and to stimulate innovative and sustainable entrepreneurial development in these areas. The analysis showed that many economies in peripheral regions suffer from remoteness, low population density, small size and fragmentation of markets (including labour markets), and economic dependence on a few economic sectors and niches (‘monocultural economies’) with less representation of manufacturing sectors.

The predominance of small firms and the lack of large companies make these economies even more dependent on SMEs and entrepreneurial initiatives than in other regions. Framework conditions for SME and entrepreneurship development on islands and in peripheral areas were less favourable than for other EU territorial areas.

Therefore, areas with territorial specificities, as are islands, peripheral regions, sparsely populated areas, mountains and outermost regions, face a number of common challenges, which are connected to their geographic characteristics. However, not all peripheral areas have to cope to an equal extent with all challenges