SÖDERTÖRN RESEARCHER: How to make archipelago entrepreneurship flourish

Logistical barriers, high costs and fragmented policy decisions complicate the lives of many archipelago entrepreneurs. At the same time, local innovation can pave the way for a prosperous future. But a national strategy is needed that takes the needs of island communities seriously.

Most Swedes associate the archipelago with sun-drenched cliffs, beautiful boat trips, top-class cafés and restaurants. And it is thanks to hard-working entrepreneurs that we tourists get the opportunity to experience this. But for many islanders, life as an entrepreneur is not always easy.

– It is not possible to separate entrepreneurship from society on islands. If society doesn’t work, neither does entrepreneurship – and vice versa, says Paulina Rytkönen, researcher at Södertörn University.

Seasonal activities and logistics issues

With 267 570 islands, Sweden is the most island-rich country in the world. About 400 of them are populated without a mainland connection. And it is on these islands, without bridges or tunnels, that Paulina Rytkönen, together with other researchers, has studied business and entrepreneurship. Her Södertörn colleague Tommy Larsson Segerlind is part of the research team:

– One of the main obstacles to archipelago entrepreneurship is logistics. Transportation of goods and materials is expensive and time-consuming, and many islands lack basic public services. In addition, many activities are highly seasonal, making long-term planning difficult.

– Running a business on an island requires not only business skills, but also logistics skills and a large network of contacts. You need to know who can transport an important product for you when you need it, continues Paulina Rytkönen.

Examples from the pandemic show how local mobilization and cooperation became crucial. On some islands, visitor flows were carefully organized, and ferry staff coordinated with local businesses to reduce the spread of infection and secure supplies.

Social capital is the key to success

Another finding of the research is the importance of social capital – that is, the ability of residents to cooperate and mobilize resources for common goals.

– Civil society, including business associations, are key actors on the islands as they often run development projects together with local businesses and stakeholders, says Tommy Larsson Segerlind.

Archipelago communities with strong social capital are often more resilient to crises and have better conditions for development.

– We clearly saw during the pandemic that islands with high levels of engagement and cooperation fared much better than those with low social capital. The difference between success and failure is often about the ability to mobilize power and find common solutions, says Paulina Rytkönen.

Policy reforms – a must

Despite local creativity and innovation, archipelago communities suffer from structural barriers. One of the biggest challenges is the lack of a Swedish archipelago strategy or island law. Sweden currently has no framework to ensure that policy decisions are adapted to the specific needs of island communities.

– Current regional policies are often based on distance as the crow flies or time spent driving to an urban center, which is not applicable to islands and can create major negative consequences. For example, it can mean that island entrepreneurs have to spend a whole working day traveling to and from the mainland to solve administrative issues, explains Tommy Larsson Segerlind.

– Finland has had an archipelago law since 1981, and is now revising it to adapt it to current needs. Sweden, which is one of the world’s most island-dense countries, should learn from this and introduce a similar law,” says Paulina Rytkönen, who has discussed the issue with Swedish politicians and OECD representatives on several occasions.

An archipelago law could prevent absurd situations, such as when restaurants on islands cannot comply with refrigerated garbage rooms because building permits are not granted in port areas. It would also bring more clarity to decisions related to infrastructure and public services.

– If schools, shops or ferry services disappear, it affects not only the daily lives of islanders but also the ability to run businesses. This makes the islands particularly vulnerable, as small changes can have major consequences for the entire island community, says Paulina Rytkönen.

The archipelago as a laboratory

Despite the challenges, researchers see great opportunities in the archipelago. Islands can serve as testing grounds for sustainable energy and transport solutions. Initiatives such as solar farms and electric boats can not only benefit local communities but also be scaled up nationally.

– The EU sees islands as potential laboratories for sustainable development. “We have already seen examples of Swedish islands successfully coordinating collective waste management and energy efficiency. This could be a model for other regions, says Larsson Segerlind.

Future opportunities

Research continues to develop through initiatives such as the Swedish Network for Island Research, which works to pool knowledge and create a platform for collaboration between researchers, businesses and local communities. But for archipelago entrepreneurship to flourish, both political will and financial support are needed.

– If we want the archipelago to be more than a vacation idyll, we need to create conditions for year-round living and business. It’s about ensuring social, economic and ecological sustainability, says Paulina Rytkönen.

– With the right policy reforms and continued local innovation, the archipelago can not only retain its vitality but also become a model for sustainable development in Sweden and internationally, says Tommy Larsson Segerlind.

This article is published in collaboration with Södertörn University.

Contact
paulina.rytkonen@sh.se
tommy.larsson.segerlind@sh.se

More about Swedish Network for Island Research

PhD student wanted
A PhD position is currently available to study sustainable development on islands with a focus on collaboration. For more information contact Tommy Larsson Segerlind.

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