Paul Leahy B.Sc (Hons) Rural Development NUI
Qualitative and quantitative approaches to research
March 5, 2009Introduction
The main elements of both quantitative and qualitative are described. A diagram is used to illustrate the quantitative approach while a textual description is felt sufficient for the qualitative approach. The views of various experts are presented.
The strengths and weaknesses of both approaches are presented with reference to the views of various experts whose overall consensus weighs down in favour of adapting a mixture of both approaches to tailor the demands of the task in question.
Finally examples of both approaches are presented to illustrate the different approaches.
the quantitative approach employ highly structured techniques of data collection, such as surveys that allow quantification, hypotheses , measurement and operationalisation which are secondary in nature, such as newspapers, magazines, journals, books, statistics, survey and websites. Large samples are used. Consistency is required of the data collected.
The quantitative approach is prepared in a precise and accurate manner with the study problem formulated in advance. The underlying thinking of this approach holds that all understanding of cause in the social sciences can arise only from unbiased and generalisable quantitative estimates of relationships between a causal variable and an outcome variable. This is because being able to generalise to a larger population is the major goal, this approach concentrates on how accurately estimates of a relationship in the researchers sample reflect those in the population as a whole (M25 2005.).[i]
This method of arguing from the particular to the general by showing the relationship between the causal variable to the outcome variable is called the deductive method and is a major characteristic of the quantitative approach.
Gill and Johnson[ii] describe this in the following diagram;
|
Theory/ Hypothesis Formulation |
|
Operationalisation – translation of abstract concepts into indicators or measures that enable observations to be made |
|
Testing of theory through observation of the empirical world |
|
Falsification and discarding |
|
Creation of as yet unfalsified theories covering laws that explain past and predict future observations |
This view of A causing B is challenged by proponents of the inductive approach such as Laing (1967)[iii] who argue that it ignores the complexities of human behaviour. However effective use of the deductive technique of theory development depends on a process of continuous testing.
Opponents of the qualitative approach argue that it sets too few observations to generalise for the larger population
The Qualitative Approach
This inductive method focuses on the development of theories and explanations of the real world. (http://www.socialresearchmethods.net/kb/dedind.htm 19/09/05)1 Gill and Johnson,(1977)[iv] said “there is then in this approach an emphasis on the analysis of subjective accounts which are generated by ‘getting inside’ situations and involving the investigator in the everyday flow of life. Emphasis is on theory grounded in empirical observations which take account of subjects meaning and interprational systems in order to explain by understanding. This approach generates and uses mainly qualitative data and minimum structure. (Gill & Johnson, 1997.)[v]
this method is described by Mason (2002)[vi] as not encumbered by structures that are a feature of the quantitative method and focuses on getting inside the real world, a lsee formal or mechanical relationship between researcher and respondent. The study starts often starts out with no intention of producing hypotheses, although hypotheses emerge from the research. Creswell (2003)[vii] has summarised the key processes of the inductive approach which begins with the researcher gathering information, he then formulates questions posed from that information. From the data analysis thus gleaned, themes or categories are formed. These are then scanned for broad patterns, generalisations or theories which are related to past experiences or literature.
Strengths and weaknesses
There are strengths and weaknesses in both methods which has been the focus of academic debate. While not appearing to come down on either side David de Vaus (2002)[viii]. succinctly summarises the strengths and weaknesses of both methods;
“Survey research is widely regarded as being inherently quantitative and positivistic and is contrasted to qualitative methods that involve participation observation, unstructured interviewing, case studies, focus groups etc. Quantitative survey research is sometimes portrayed as being sterile and unimaginative but well suited to providing certain types of factual, descriptive information-the hard evidence. Qualitative methods are often regarded as providing rich data about real life people and situations and being more able to make sense of behaviour within its wider context. However qualitative research is often criticised for lacking generalisability, being too reliant on the subjective interpretations of researchers and being incapable of replication by subsequent researchers.
This distinction between quantitative and qualitative research is frequently unhelpful and misleading. It is more helpful to distinguish between two stages of the research process; collecting data and analysing data”
Kaplan and Maxwell (1994) are quoted in http://qual.auckland.ac.nz/general.htm Kaplan,B and Maxwell, J.A. 21/09/05 as saying; 2
“Qualitative research methods are designed to help researchers understand people and the social and institutional context is largely lost when textual data are quantified.”.
Palys (1997)[ix] however is quoted in Module 25 Lecture Notes, in defence of the quantitative approach as arguing;
“One of the key challenges of the deductive approach and the development of a theory, is that it should be continually tested and utilised for making predicitions and that it is through this process that the theory’s utility and value can be accurately addressed…. a theory is expected to to be put continually on the line in new and fair tests of its veracity.”
An example of the quantitative approach survey is The Employment and Vacancies Survey: July 2005. which was commissioned by Fas and undertaken by the Economic and Social Research Institute. (See Appendix 1)
An example of the qualitative approach is “Informal Labor and Social Relations in Northern Malawi: The Theoretical Challenges and Implications of Ganyu Labor for food security.” by Rachel Bezner Kerr, Department of Development Sociology, Cornell University 2005.
Conclusion
We have described the various elements of both approaches to social research
We have described the various elements of both quantitative and qualitative approaches to social research. With regard to the quantitative approach we looked at the highly structured techniques of data collection, which largely defines the role of that approach, deductive in nature, which involves the use of sources of secondary information such as government statistics, printed press, journals and surveys.
The quantitative approach is precise and accurate, inspired by an underlying thinking that its authority and superiority as a method of social research is predicated on its unbiased and scientific approach. The views of leading experts such as Gill and Johnson and Laing are presented to illustrate differing thinking on the subject.
The qualititative approach, however which employs the inductive method of arguing from the specific to the general by developing theories and explanations of the real world drawing its conclusions from the outcome of such human research materials as focus groups, interviews and case studies.
Recent thinking on the strengths and weaknesses of both methods generally agree that a mixture of ingredients of both methods adapted to the individual requirements of the
particular research question under consideration is the most appropriate method to adopt.
[i] Phelan, J. (2005)Module 25, Lecture Notes, UCD
[ii] Gill J. and Johnson P. (1997) Research Methods for Managers, 2nd Edn. Paul Chapman Publishing, London
[iii] Laing. R.D (1967). The Politics and Experience of the Birds of Paradise, Penguin, Harmondsworth
[iv] ibid
[v] ibid
[vi] Mason, J. (2002) Qualitative Researching, 2nd Edn., Sage Publications, London.
[vii] Cresswell, J. (2003), Research Design, Qualitative, Quantitative and Mixed Methods/ Approaches 2ND Edn., Sage, Thousand Oaks
[viii] De Vaus, David (2002) Surveys in Social Research, p5..Routledge, London,5th Edn.,
[ix] Palys (1997) Quoted in Lecture Notes Module 25, couldn’t find other details of this author
Webliography
1(http://www.socialresearchmethods.net/kb/dedind.htm 19/09/05)
2http://qual.auckland.ac.nz/general.htm Kaplan,B and Maxwell, J.A. 21/09/05
How sick can we get?
March 5, 2009Why are public patients dying unnecessarily in our hospitals after waiting so long for treatment that it becomes too late to save them while private patients receive immediate treatment?
We are told that this is caused by a lack of resources in a public service so run-down that privatisation is the only solution. Instead of attempting to improve the service, its run-down condition appears to be seen as an excuse to feed the greed of those who would profit from this misfortune.
Let us look at the factors which are creating the shortage. The present system motivates doctors to place patients in beds who could be more efficiently treated as out patients, many chronic patients could be treated in the community or in their own homes by dedicated specialists. Many private patients are in public beds. Others are there because of over diagnosis and over treatment which places an inordinate and costly emphasis on high tech treatment at the expense of bed side clinical consultation.
These problems can be solved by the provision of community and home facilities for those who are presently occupying beds in our hospitals, withdrawing incentives to doctors to place patients in beds who could be treated as out- patients.
Solutions can also be found in the experience of other countries that have been faced with similar problems. In a number of states in the USA where the problems described above are infinitely worse than here, although we are getting there fast, there is a system known as the Kaiser Promenante Scheme. This scheme could be described as a co-operative of medical practitioners, insurers, patients. In fact everyone involved in healthcare. Participants of that scheme are treated at a fraction of the cost.
It has been suggested by Dr Risteard Mulcahy[1] that Ms Harneys ambition to place 11 private hospitals on the grounds of our major hospitals be replaced by a system whereby non profit hospitals were built on the grounds of our major hospitals with both hospitals under joint management without expensive state of the art high tech private for-profit hospitals as originally proposed by Ms.Harney.
A report[2] commissioned by ICTU which included the vast majority of health workers at all levels said:
“The Government should abandon its plan to permit and encourage private hospitals to be constructed on the grounds of public hospitals. The VHI should continue to serve national rather than private or parochial interests. Whatever the future of the VHI, it should not become a for-profit company”
Dr Hickey who works in the Cuban Health service told the Pat Kenny Show on RTE that it was second to none in spite of the poverty in that country.
The government coalition partners in their progress report[3] on the joint programme claim:
“The development of a world-class public health service is a core objective for us. Based on the blueprint set out in the National Health Strategy, a combination of greater investment and a reform of the system will provide a high quality and accessible health service for all. It will ensure a major expansion in the level and quality of services throughout the country. And it will encourage the end of the two tier health system by ensuring that public patients will have access to timely and quality services in all parts of the system”
It is difficult to square the assertions by the ICTU report, Dr Mulcahy and many others with the claims by the present government. The aspirations in the Government statement contrasts starkly with public patients dying because they were not attended to in time. Dr Mulcahy’s warning that our health service could end up as a one tier private system supported by private insurance is ominously borne out in the PD/FF progress report which promises to introduce a a one tier system[4]
The real revolution in our health service can only be achieved by the electorate in May by changing the present government. Given the failure of the opposition parties to support such radicalism when they were in power, one wonders if the alternative can be any better. It is for this reason that the election needs candidates who will support the alternatives outlined above..
Health and Social Service Policy in Ireland
March 5, 2009Introduction
This study will examine government policy towards the achievement of efficiency versus equity in the provisions of the countrys health service and will prevent recent discussion on the debate surrounding the trade-offs in that area. The contribution that the private sector can make to address issues of Rural Development which is resisted by the public sector wil also be examined.
Finally the contribution of applying the Radical Equality to this debate will be flagged as a possible solution to this dilemma.
Lecture notes for this module define efficiency and equity as;
“…. the term used when society has allocated a level of output and has allocated its resources accordingly….. Equity on the other hand is a system of justice based on conscience and fairness”[i]
Government policy tends to justify a trade of equity against equality on grounds of achieving efficiency in health service provision. The implications of such a policy in rural areas have meant reduced hospital care with larger and more and more hi-tech facilities. This is justified on the grounds of economies of scale with a sparser population spread over a wide area.
The lack of hospital services in rural areas has contributed to the depopulation of rural areas and vice versa as many people especially the elderly who have a greater likelihood of needing such care move to live in urban areas.
While the inefficiency of large hospitals in rural areas is obvious from the point of view of cost and staff resources this shortfall can be complemented to some extent by the provision of outreach type services such as health centres in local areas.
Trade offs of between efficiency and equity would also occur in the types of services provided. The example of free spectacles versus insulin for diabetics is one example. The prioritisation of services for self inflicted conditions such as lung cancer from smoking against other forms of cancer or heart disease in situations where resources are limited and choices have to be made has been suggested by members of the medical profession. As such a policy would increase the efficiency with which prioritised treatments were implemented this would be a classic example of a trade-off between efficiency and equity.
The private sectors have a contribution to make in this area by the provision of health services in rural areas. An initiative by a group of doctors in has been spearheaded by a group of general practitioners in the West of Ireland known as Irish Rural Doctors Ltd..
They have set up a “St. Brendans Village Project” which provides care for elderly people in a local community. Details are available on their website http://www.rural-health.net They describe themselves as addressing problems of rural depopulation not just in health care, but have engaged in other measures such as setting up advance factories.
Other initiatives where the problems arising from the trade-off of equity and efficiency are being ameliorated by private sector initiatives are the provision of nursing homes in rural areas. These measures however are expensive and benefit only a higher socio-economic group and fail to address issues of poverty reduction in rural areas.
Lecture notes for this model acknowledge;
“… Governments tend to favour the centralisation of resources, which places people living in rural areas in a difficult situation when they need health and social services. Any move away from centralism and the geographic concentration of power and control of resources will require new thinking about the trade off between efficiency and equity in resource-allocation decision making.. We also have seen that for the majority of economists efficiency is the primary criterion by which resource allocation decision is judged. An interesting question arises as to whether in some instances; concern with equity should take precedence. Trying to make a judgement on the relative weights to be assigned to efficiency and equity arguments in resource allocation decision making forces us to think about the values that underpin the choices we make about who gets what, and the subsequent implications of those choices we make for the lives of people and communities in rural areas.”[ii]
Recent efforts to create further trade-offs in efficiency against equity by the plan to close regional hospitals and exchange services from regional hospitals with general hospitals have sparked further debate in this area.
The proposals to transfer the accident and emergency service from St. Colmans Hospital Loughlinstown to St. Vincent’s Hospital in Elm Park and provide non-emergency treatment for Wicklow based patients. This was justified on efficiency versus equity logic by efficiency consultants.
The staff however made the point that the efficiency versus equity logic would be better served by retaining the accident and emergency unit in Loughlinstown, which would mean less ambulance time bringing emergency victims for treatment. The treatment of non emergency patients who would require treatment for oncology, cardiac etc in St. Vincents however which was a larger hospital with more sophisticated equipment would be a more efficient use of limited resources.
The writer is not favouring one argument over the other apart from the benefits of rural service provision of A and E of the latter argument, but illustrates both sides in order to demonstrate the debate which is associated around these issues.
It has been shown that health problems are greater in lower socio-economic groupings that comprise a larger spread of the population than higher socio-economic groupings.[iii]
This situation supports the argument proposed by proponents of the Radical Equality philosophy that a reduction of social inequality in society will reduce the cost of providing health services. This is not a equity versus efficiency trade off argument per se but introduces the concept that real efficiency will be achieved when the socio economic divide is eliminated. Real savings will be achieved in our health costs.
Conclusion
The conflict between different attitudes in the health sector in the provision of health care has been presented. The protagonists in this debate are the hospital staff on the one hand and the statutory sector on the other offers little prospect of an agreed solution.
It is suggested by this writer that the philosophy of the Radical Equality movement offers solutions which are applicable to the practical issues involved in dealing with the nations health.
A comparison of exogenous and endogenous approaches to rural development
March 5, 2009Introduction
Exogenous approaches to development are characterised by increased profitability by accommodating external market demands. Consequences of this approach are a reduced labour force, therefore a depopulated local area. A reduction in the number of producers due to competition and a reduction of diversification as the remaining producers invest in single lines of production such as dairying or tillage.
Exogenous approaches can also involve industrial investment in rural areas drawing on a labour supply already created from the rural decline described above.
Endogenous approaches however involve a reversal of the above approaches drawing on the internal resources of an area in a sustainable manner for the benefits of the inhabitants of that area. Co-operative enterprises of various kinds are more suited for this kind of development although conventional businesses of a small or medium type size are also relevant in such capacity building.
Background
Sustainable development has three main components, economic, social and environmental. The economic component ensures that financial benefits endure, the social component enables the existence of conditions to retain people in an area and the environmental component supports methods that do not damage the land.
Farming developed from subsistence farming to a stratified society where it passed through two further production methods of secondary to tertiary production. A disadvantage to farmers in this cycle resulted in a reduction of an increasingly reduced demand for farm produce in comparison to a rising demand for non-farming products.
Lecture Notes in Module 2 of the Diploma Course state;
“A key determinant of agricultural restructuring is technology. Machine technology has been supplemented by new biotechnologies in animal and plant production. Technology according to the NESC report, tends to be selective by scale, with those making the biggest investments in the level of mechanisation per farm tending to be on the larger farms. Direct costs on these larger farms, for such items as fertiliser and seed, were more than five times the average[i]
The uptake of new technologies means that costs are shifted from labour to capital with farms paying interest on loans for new technologies, rather than paying wages to farm workers”[ii]
Exogenous
There are two aspects of exogenous development in rural areas. The first relates to the rationalisation of farming under the earlier CAP measures as described in the quotation above. The second relates to the introduction of external industrial investment into rural areas initially intended to redress rural decline.
This second stage of production accompanied an exogenous approach to farming as described in both modules 1 and 26 in the lecture notes of this course as;
“The exogenous approach to development, the most dominant model of development, is an outward oriented, top down, centralised approach to decision-making and implementation, focussed primarily on aggregate production and numeric outputs of present economic growth. Professionals and experts are brought in to ascertain and take charge of the situation, and ‘blueprint’ rescue packages are often applied to remedy stagnation and decline. These packages tend to promote the infusion of external investment and capital and the process of industrialisation in order to stimulate economic growth and development through modernisation, job creation, profitability and the generation of wealth.”[iii].
The exogenous approach can lead to the withdrawal of such enterprises when difficulties arise, such as a decrease in profitability or competitive labour conditions elsewhere.
An example of the failure of the exogenous method can be found in Calhoun County, Alabama where in a place called Anniston , a chemical corporation called Monsanto produced a product with methods which released cancer causing agents into the local water table. In typical exogenous fashion the corporation provided considerable employment for local people.
Endogenous
Lecture Notes in this module describe the endogenous method as;
“…. Community based and community driven, focussing on the establishment of inclusive and democratic processes and systems that decentralise decision-making and implementation. It values indigenous knowledge and experience and relies on participation to find solutions to local needs from within the local community. Local resources are used as much as possible to meet locally determined objectives. As a result, local economic self reliance is encouraged by the promotion of locally owned and controlled systems of service and production that are supported by local authority policies and programmes that facilitate sustainable livelihoods through job creation and security”
Kaldor is credited with being one of the earlier proponents of endogenous theory;
“However, Nicholas Kaldor was really the first post-war theorist to consider endogenous technical change. In a series of papers, including a famous 1962 one with J.A. Miralees, Kaldor posited the existence of a “technical progress” function. That per capita income was indeed a function of per capita investment. Thus “learning” was regarded as a function of the rate of increase in investment. However, Kaldor held that productivity increases had a concave nature (i.e. increases in labour productivity diminish as the rate of investment increases). This proposition, of course, falls short of Solow’s investment on constant returns.”[iv]
Valquez-Barquero describes endogenous development as;
“It was in response to the loss of industrial and policy capacity of the industrialisation model, based on large firms located in large cities, that researchers of endogenous industrialisation put forward a new proposal, They demonstrated that industrialisation in late developed countries, such as those of Southern Europe (for example in the Terza, Italy, in the region of Valencia in Spain and in the Val do Ave in Portugal) was initiated and consolidated thanks to the development of local industrial systems. This historic approach to development is characterised by specific forms of organisation of production, integration of society and institutions into productive processes and response of the territory and its economic actors to the conditions of the new economic, political and institutional environment.
[Refers to industrial/urban context, but still relevant to this more rural focussed study] The production of manufacturing goods-generally industrial products, through the flexible organisation of production and the intense use of labour is a feature of endogenous industrialisation processes. Firms specialise in the production of parts of the productive components that are later assembled to make the final product. The labour force employed in the production process is flexible in the sense that it can perform various tasks and the labour supply can be adapted to the firms demand for labour through home-work and part-time and informal work,
Endogenous industrialisation is also characterised by the fact that integration of the productive system into the local society is achieved through the firms. On the one hand, firms find hey are destined to co-operate with each other because of the way in which specialisation in the local productive system evolved and the fact that their reduced sizes forces them to co-operate in order to maintain the economies of scale necessary to compete. Moreover, local traditions, values and codes, as well as family, social and cultural structure, are driving forces in the dynamics of the industrialisation process. They contribute human and financial resources, facilitate labour and social relations, and encourage the formal and informal exchange of goods and services and diffusion of information and knowledge throughout the network of firms and local organisations.
Finally, endogenous industrialisation processes are deeply rooted in the territory. They spontaneously emerge in small and medium-sized cities [therefore rural] through the activity of local entrepreneurs. Over time, technical know-how accumulates and they form their own relational systems and consolidate cultural habits that generate economies that justify their survival. An economic and institutional milieu is thus created which provides local firms with resources, services and cooperation networks, all of which leads to improved competitiveness in national and international markets.”[v]
The inherent disadvantages of this method led to the collapse of farming and rural communities resulting in pressures in urban areas, which forced the search for other methods.
Endogenous development can be described as the utilisation of resources within a locality for the sustenance of its inhabitants.
Rural development thinking evolved in recent times through the various CAP measures, which sought to revitalise rural communities through the creation of endogenous measures, which revitalised local economies from within. The reversal of social exclusion, which contributed to rural poverty, was seen as a critical element in this trend. This was dealt with by capacity building, training and social employment measures through social enterprises. Infrastructure measures such as road building are another measure of capacity building necessary to kick-start a local economy
Examples of endogenous enterprises on the ground are where small producers jointly brand their produce. Many co-operatives started in this way and while these enterprises became victims of their own success in that they grew into the monsters they were originally set up to replace as they were forced to rational their resources to maintain growth in an increasingly competitive market, e.g GlanBia. This produced a new generation of small producers who took the form of farmers markets where farmers brought their produce to local areas where they sold directly to the public. The costs of such ventures which were not beset by the overheads of more conventional competitors resulted in increased profits for the producer and revitalised a social atmosphere in which was hitherto a fading memory in rural areas.
Official European Union support for such endogenous development is reflected in a speech delivered by the EU Food Commissioner David Byrne to a group of Small Food Producers in Maynooth in November 2003;
“…. the success of rural economies into the future will not depend on the success of Agriculture or farming on their own.
Greater wealth and consumer interest will fuel demand for all sorts of diversification in rural economies. To meet such demand we must ensure that rural communities are equipped to take advantage of the opportunities of the changing consumer led landscape.
Diversification within, and most significantly beyond, the agricultural sector will become essential for rural economies to compete. If rural economies cannot compete then they will lose out, decline and die.
Therefore policy going forward has to adapt to this new imperative.” [vi]
Examples of endogenous approaches to development are enterprises set up by Leader Companies, Co-operatives,
.
Where its needed
March 5, 2009Financing Rural Regeneration in Wicklow.
By Paul Leahy. B.Sc. ((Hons.) Rural Development)).NUI
One method of rural regeneration involves the financing of businesses in rural areas with outside assistance, which would not have succeeded independently and were encouraged through various government sponsored initiatives to regenerate declining rural economies. Grant aid would be the most utilised source of funding. Many of these enterprises that would have been set up by private individual entrepreneurs would be partly financed by owner’s equity as a condition of grant aid. Within this context of outside assisted enterprises, other sources of finance, subject to the terms of grant aid such as leasing of plant or hire purchase arrangements for vehicles would also be utilised.
Co-operative Societies have also been a source of finance in rural areas where conventional sources would have been unavailable due to the priority of profit distribution to outside shareholders. Co-operative shareholders however reinvest a larger share of profits back into the business and offer a greater degree of stability than conventional businesses more prone to outside market fluctuations.
LEADER companies were a successful source of funding enterprises in rural areas. They supported; private individuals develop enterprises in rural areas, community led projects, joint INTERREG programmes with partners in EU member states and community projects supported by other statutory bodies and projects initiated by the LEADER companies themselves. The terms of LEADER funded grant aid for private projects were subject to a limit of €7500, 50% for private projects, 80% for community based projects. LEADER funded Innovative Rural Enterprise, crafts enterprise and local service facilities, exploitation of agriculture, forestry and fishery products, enhancement of natural/built/social/cultural environment and environmentally friendly initiatives to a maximum of €65,000 at a rate of 50% Support is also available through LEADER plus for Rural Agri-tourism initiatives, product development of leisure recreational facilities and tourism marketing promotion and training. The latter is grant aided to a maximum of €10,000 at a rate of 40%. Under exceptional circumstances, grant aid of up to €100,000 was available. The LEADER programme was replaced in December 2006 by a similar programme set up and funded by the Department of Community, Rural and Gaeltacht Affairs. It is a more streamlined version of the LEADER programme in which Three funding companies have been amalgamated into one under the Departments Cohesion process. The new company, yet to be named, will receive a budget of €10M. Treble the previous amount.
An example of funding sources available from the County Enterprise Boards can be found in the Wicklow CEB where Capital Grants of up to 50% of the cost of fixed assets or €75,000, which ever is the lesser. This is refunded to the board over a period of 5 years at a low rate of interest and is known as a refundable capital grant. It is lent to enable the applicant purchase machinery, equipment, buildings or workshops. Enterprise Ireland’s led Business Angels are a source of finance offered by participating individuals who are described as “informal private investors” and who invest capital in companies during their early stage of development. In addition they contribute their know-how or experience in company management and can offer valuable expertise and guidance. Angels usually seek active participation in the company in which they invest. Business Angels are a substitute for classical bank financing or venture capital, which is often lacking at the early stage of a company’s life. They are primarily motivated by return on investment and Business Angel involvement can often help secure access to venture capital or classical bank loans. The average initial investment by Business Angels range between €25K and €125K. Business Angels generally invest in the region where they live and in areas in which they have greatest expertise/knowledge. They may not necessarily look to invest in new technologies, although some specialise in providing in such areas The business expansion scheme allows individual investors obtain income tax relief on investments in each year to 2006, there is no tax advantage, but involvement in a BES can attract other (external) funding. Tax relief is available for qualifying individuals are for €31,750 in any one year.
A Farm Forest Enterprise Scheme is an option under Teagasc in rural areas, which can be considered provided the following steps are taken. These involve the assistance of an approved forester to prepare the grant application, the option of allowing the approved forester to establish and manage the operation, and the approval by the Forest Services of the applicants grant application.
There are many sources of finance available for the establishment of enterprises in rural areas. This study has concentrated on the creation of new rural enterprises. Some of the sources examined, such as Business Angels or Business Expansion Schemes would also be appropriate to enterprises in urban areas in that they do not necessarily address conditions specific to rural areas which would have an agricultural or environmental element. Other sources are specifically designated to rural areas such as the LEADER plus programmes, co-operative groups or the Teagasc initiatives. These schemes are available to private individuals or community groups. The purpose behind these initiatives is to foster economic regeneration in rural areas. and their overall success must be contingent on their ability revitalise the economic well-being of the communities they are targeted at. There are advantages and disadvantages to all of them the applicant must consider the opportunities presented as well as the drawbacks, such as the bureaucracy associated with these schemes as well as the threat to reduction of state support. Finally it is up to the community and the individuals in these communities to avail of the possibilities offered.
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