PEOPLE in Scotland's rural areas are better at creating businesses than their city-based counterparts, according to Iain Scott of the Robert Owen Foundation, who has just completed a study on new ideas in rural development, writes Robert Ross, Farming Editor.

His report on becoming an entrepreneur in rural Scotland, published by the Scottish Office, concludes that rural dwellers should not be put off by being in a remote location. It can be an advantage.

One important lesson is to try to come up with an original idea, he suggests.

''There are too many examples of 'copycat' ventures started in rural areas which have failed because they have been embarked upon without careful planning or consideration.

''You may have identified a gap in the market - such as no local village shop - but this alone is not enough. It is important to find out why the last shop failed and decide whether you can overcome the problems they experienced.''

That said, however, Scott admits that there is a strong demand for what seems to be the biggest copycat operation of all - the ubiquitous tearoom or coffee shop.

''Initially, we thought we didn't want to look at too many tearooms, but then we turned up quite a lot which were employing seven or eight people and generating very good profits. There was one turning over #300,000 a year. Anyone sneering at coffee shops should really be thinking again.''

One of the case studies in the report is Frances Fleming's tearoom at Peel Farm, in Glenisla, one of the loveliest glens in Angus. It started off with two tables in the sun parlour and is now housed in a 30-seat unit adjacent to the farmhouse.

The current crisis in agriculture has spurred the Flemings to build another extension - a conservatory - so that the operation is big enough to handle coach parties.