A report conducted by EIT Food North West has recommended the establishment of an inclusive regional network for small and medium-sized enterprises (SMEs) in the agri-food sector. The report was based on the insights from 100 agri-food SMEs. EIT Food is supported by the European Institute of Innovation and Technology, a body of the EU which has been tasked with driving innovation and entrepreneurship across Europe.
The report additionally found that SMEs in the agri-food sector tend to be mission-led, purpose-driven businesses motivated by changing the system. EIT has outlined that while it is positive that SMEs focus on more than profit alone, it can create significant challenges for them, as they want to introduce new products and services into the market. Some of the challenges facing the sector are adopting new technologies and business models from industry and changing government policies. According to the document accessing customers, markets and technical expertise can also prove to be a barrier to growth.
EIT Food NW says that securing funding can be challenging as “investors tend to prioritise return on investment” while innovation in the sector may take longer to reach profit. With a great deal of support in place for SMEs to grow their businesses, the report highlights tailored services are not extensive for the agri-food sector.
Jayne Brookman, director of EIT Food North West, commented on the report by saying “there are particular challenges around providing tailored support for small ‘farm to fork’ businesses. Most innovation support agencies have to support a wide range of sectors.”