Investigating the Social Capital and Resource Acquisition of Entrepreneurs Residing in Deprived Areas of England

Robert Lee, Heinz Tüselmann, Dilani Jayawarna and Julia Rouse
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Dilani Jayawarna: Management School, University of Liverpool, Chatham Building, Chatham Street, Liverpool L69 7ZH, England
Julia Rouse: Centre for Enterprise, Manchester Metropolitan University Business School, Aytoun Building, Aytoun Street, Manchester Ml 3GH, England

Environment and Planning C, 2011, vol. 29, issue 6, 1054-1072

Abstract: Enterprise policy in England has focused extensively on funding and training aspiring entrepreneurs residing in deprived areas. These policy initiatives have been directed at increasing the capabilities of entrepreneurs residing in deprived areas without knowing about their social capital and access to resources. This study is based on a survey of entrepreneurs that have completed the New Entrepreneurship Scholarship training programme across the nine regions of England. The findings suggest that social capital helps explain the acquisition of resources entrepreneurs residing in deprived areas need to develop a new venture. However, there seems to be an overreliance on bonding ties for resource acquisition. Too much bonding can lead to redundant resources and ‘getting by’ and may limit growth. In light of these findings several recommendations are developed for the coalition government's Local Enterprise Partnerships policy and the future funding of entrepreneurship initiatives in deprived areas.

Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envirc:v:29:y:2011:i:6:p:1054-1072

DOI: 10.1068/c1188b

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