New sustainability programs at the EU level, such as the Nature Restoration Law, One Health Program, and the EU Biodiversity Strategy, raise questions for natural resource-based companies on how to integrate restorative and regenerative practices while ensuring long-term viability. Forests are not only sources of timber and raw materials, but they also hold potential for food production, recreation, and cultural experiences. They also provide climate benefits, ecosystem services, long-term economic potential, and represent a core area of Swedish innovation.

Despite this, forestry still is largely dominated by industrial production, while alternative uses often are treated as complementary rather than as self-sustaining business opportunities. Forest owners are defined, both by the industry and by themselves, as producers of raw material – not as entrepreneurs or resilient small firm owners.

The creation and maintenance of small-scale forestry face several challenges. Regulations and policies are prioritising raw material production over holistic ecosystem values. There is limited knowledge on how multifunctional forestry can be organised into viable local business models and there is a lack of good examples. Forest owners are a highly diverse group, many of them with limited resources, lacking networks and support for diversification. However, it seems that markets for new forest-based products and services are emerging, despite the uncertain demand.

[Skogens Mångbruk](https://www.skogensmangbruk.se/) is all about unlocking the full potential of forest landscapes to support vibrant, sustainable rural businesses. The association brings together people who are exploring diverse and innovative ways to use forests, creating a space to share ideas, experiences, and best practices that benefit both local enterprises and society at large. To inspire more forest owners to get involved, we need strong examples of successful business models, especially those with international relevance and market potential.  
This is where you come in!  

**Your Challenge**  

How can small-scale forestry-based business models contribute to rural revival, entrepreneurial diversity, economic vitality, and ecological regeneration in forest-based contexts?  

Put yourself in the shoes of a small-scale forest owner somewhere in Sweden, or why not partner with one! Explore and propose how actors in forest regions, from private forest owners and small-scale entrepreneurs to local communities and regional stakeholders, can design, combine, and manage portfolios of activities that:  
1.    Create added value not only through timber production but also through food products (e.g., tar syrup), eco-tourism, educational initiatives, nature and carbon credits, and more.  
2.    Promote ecological regeneration restoring forest biodiversity, soil health, and long-term carbon sequestration.  
3.    Secure long-term economic sustainability building resilient economies rather than relying on single income streams.  
4.    Strengthen social values and local cohesion by creating new employment opportunities, improving quality of life, and enabling agency for diverse rural actors.  

Focus on concrete places or regions, identify assets and limitations, and propose innovative combinations of activities, business strategies and business models, that can be scaled or transferred to similar contexts. Develop both venture ideas and policy concepts that enable small-scale and industry-complementing forestry. 

**Curious about the challenge?**

Check out what last year’s ECIU learners accomplished. [Watch the video](https://vimeo.com/1069207159/1b40b0d60a) to see how they tackled the Sustainable Forest Challenge through responsible innovation.

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Associate partner

Skogens Mångbruk

Associate partner

Skogens Mångbruk