Socio-econimic Analysis of Factors Influencing the Longevity of a Rural Business: A Case Study of Bourgault Industries Limited, St. Brieux, Saskatchewan, Canada

Abstract

As a result of various factors, rural areas in Saskatchewan have experienced a massive decline in its population as well as in its economics base. Industrialization of the agricultural sector has been identified as a prominent factor which has now made it possible for fewer people to perform activities previously performed by several people. In addition to this, the need to achieve efficiency in the use of mechanized farming implements has further enhanced the consolidation of smaller farms into larger ones. These events have led to the release of some farmers from farming activities and, hence, out-migration from rural areas to larger cities in search for more job opportunities. The need to strengthen the economic base and the population of rural areas have raised the question that what other economic activity is possible in rural area apart from farming, hence, manufacturing may offer some opportunities. This study has adopted a case study approach to investigate the factors influencing the location decision as well as the factors influencing the success of a rural manufacturing firm called Bourgault Industries Limited. Bourgault Industries Limited is a rural family-owned manufacturing firm established in 1974 and it is located in St. Brieux, Saskatchewan. Apart from being a commercial success, its presence has also fostered the population and economic growth of St. Brieux. It is therefore important to investigate the factors that influenced the location decision in this rural area as well as the various factors that have contributed to the company’s success. In order to conduct this investigation, a conceptual framework developed from the review of literature, location theory, X-inefficiency theory, social, family and human capital theories was adopted to explain the roles of different factors in the success of this company over the last 40 years. Outcomes from this investigation reveal that the success of Bourgault Industries Limited lies within the interwoven relationship of right timing, organizational strategies, social cohesion and family ties, location specific factors, adoption of no-till technology and continuous product development.