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Economic development and cohesion
Economic development and cohesion - Banding together for prosperity
“To promote the creation and survival of enterprises in Europe's most remote peripheral areas.”

The problem

Entrepreneurs wishing to set up commercial enterprises in Europe’s most remote rural areas face unique ‘territorial’ challenges. Geographical isolation brings problems of transport, communications and labour supply, along with some advantages of a rural location and possible governmental incentives to develop remote regions. Improved understanding of the effects of territorial factors is required to help policy-makers tailor their initiatives to promote enterprise development in regions far from the main centres of economic activity.

TERA  Policies for when problems come with the territory


TERA will investigate the problems caused by territorial factors, such as geography, infrastructure and labour supply, in remote rural areas in Europe.

The project will:

  • Examine the economic factors that influence the creation and survival of enterprises
  • Assess the extent to which regional development policies and programmes take account of territorial factors
  • Recommend new policy initiatives to promote enterprise development

Contribution to policy development:

  • TERA will furnish empirical evidence on the actual effects, if any, of specific support policies on the survival of enterprises in remote rural areas.
  • It will provide valuable insights into the composition, structure and weaknesses of European rural economies.
  • It will recommend more targeted policies to increase the efficiency of policy interventions assisting rural enterprises.

Project deliverables

  • Appraisal of the degree of compatibility between territorial factors and current policies in remote rural areas
  • Analytical framework for understanding the structure, composition, and weaknesses of European rural economies
  • A new framework for policy development in the light of results from the new analytical framework
  • Recommendations on competitiveness and employment in the most remote rural areas


  • Newsletters – annually
  • Posters and brochure – throughout project
  • Press releases – at regular intervals
  • International conferences – October 2007, August 2008
  • CD-ROM reporting final results – June 2008

Technical information

Project acronym: TERA
Project’s official full title: Territorial aspects of enterprise development in remote rural areas
Research priority: Sustainable management of Europe's natural resources, the modernisation and sustainability of agriculture and forestry
Specific webpage:
Proposal/contract no: 006469
Start date: 1 July 2005
Kick off meeting: 14 July 2005
Completion date: 30 June 2008

Name: University of Bologna, Department of Economics
Abbreviated name: DSE
Address: Via Zamboni. 33, Bologna
Country: Italy
Tel: +39 051 209 2617
Fax: +39 051 209 2664


Name: University of Aberdeen
Abbreviated name: UNIABER
Country: United Kingdom

Name: University of Helsinki
Abbreviated name: UH.DEM
Country: Finland

Name: University of Patras
Abbreviated name: DEUP
Country: Greece

Name: Latvian State Institute of Agrarian Economics
Abbreviated name: LSIAE
Country: Latvia

Name: Research Institute of Agricultural Economics
Abbreviated name: VUZE
Country: Czech Republic