Bringing independent rural businesses together in a cluster may not be a new trend but it's one that's helping some small firms gain a foothold during the recession. Karen Dent meets some of the older and newer entrepreneurs using this route to boost business and ride out the tough economic times.

KEITH Allan originally started his architectural antique business with wife Lynne 17 years ago in the midst of the last recession. Now they have done it again during a downturn - but this time, they are taking the cluster approach.

The couple are behind The Old Dairy at Ford in north Northumberland, where this summer they relocated their business, originally called Woodside Reclamation, from just outside Berwick.

Now the centre has two additional businesses preparing to move in and is dealing with enquiries from others interested in taking space in the converted stables at the centre.

Mr Allan said: “Within the buildings are a number of loose box stables – very much traditional stables – and we thought it would be nice to invite like-minded businesses to come in.

“We have two definitely, possibly three or four. It increases the variety of stock. One specialises in marine antiques – ships wheels, clocks, portholes – and one is curios. The place lends itself to that.”

The Allans became interested in shifting from their position close to the A1 when their lease came up for renewal and they heard about the opportunity at Etal. The buildings are owned by Ford and Etal estates, which supported the plan from the outset.

“These buildings came up and our lease was up. We felt we needed a change,” said Mr Allan.

“We didn’t want to give architectural antiques up – we’d grown a bit tired of it but we still enjoyed it. We came to see these buildings and it kick-started our minds again; we could see the potential. It’s a nice higgledy-piggledy mixture of buildings.

“Interestingly, we did have a bit of opposition from the parish council – they were fearful what we were going to do to the place. It is important scenically and historically but after a couple of meetings we managed to put their minds at rest.

“And the planners and the estate were all for it.”

Although he admits customers are currently cautious about spending money due to the recession, he has few qualms about starting an enterprise like The Old Dairy in the middle of a downturn.

“After 17 years in business, we’ve got a loyal bank of customers – people who are renovating or even building a new house and want original Victorian, Edwardian or even Georgian fittings,” said Mr Allan, who counts among the current curios on sale a pair of teak sinks salvaged from the Egyptian Embassy in London, which had been locked away since the Suez Crisis.

“I think in some ways you have to be optimistic as much as you can be in these tough times. Paradoxically, it can be a good time to start a business – you can negotiate better rents.

“The estate, they’ve entered into the spirit of it. Without their input, we wouldn’t have come here. All of that may not have happened if we were not in a recession.”

He said estate owner Lord Joicey and agent Mark Cuddigan had been supportive and encouraged the idea from the very first – even helping with the building of a car park for customers.

Mr Allan said: “People like to come out into the countryside – more and more people are shopping out of town. To come to a lovely country area like this – there’s a wonderful story here, the Battle of Flodden took place 500 years ago on the doorstep.

“There are centres like this dotted about. It allows you to reduce the overheads, if someone else is helping towards the running of the place.”

One of the longest-running such enterprises in the North East is the Milkhope Centre on the Blagdon Estate at Seaton Burn near Newcastle.

Originally set up in the mid-1980s, it currently houses 10 enterprises, mainly retail plus offices and a photography business.

Mark Wood, agent at the Blagdon Estate, said: “We had a very special set of farm buildings, which were no longer useful for farming but were too close together for housing.

“It has grown from its original intentions. Originally, the planners said there had to be a manufacturing base and they weren’t keen on the retail but slowly over the years, they have changed.”

Today, the centre mainly focuses on retail and Mr Wood says Milkhope’s setting has been a vital component of its success.

“It’s the environment. An awful lot of people want to go somewhere rather than stay in the town,” he said.

“The location is all important. We are unique because we are so close to Newcastle but out in the country. It’s important to get the mix of businesses right too. We’ve been particularly careful not to create internal competition. They do quite a lot of joint marketing and advertising, particularly at Christmas.”