Model city failure: New Haven and limits to the entrepreneurial state

Jeffrey Muldoon, Derek Yonai, Tasha M. Richard and Shahanaz Akter

Journal of the International Council for Small Business, 2024, vol. 5, issue 3, 205-215

Abstract: This paper critically examines the concept of the entrepreneurial state by focusing on the case study of New Haven, Connecticut, during the mid-20th century. We delve into the ambitious urban development efforts spearheaded by Mayor Richard Lee and his administration. In particular, we examine the construction of the Chapel Square Mall as a response to urban decline with the hope it would stimulate economic growth. Through a comprehensive analysis of historical records, political dynamics, and the socioeconomic context of New Haven, we highlight the inherent challenges and limitations faced by local governments in acting as entrepreneurs. Our findings reveal that despite the strategic intentions to revitalize the city and foster an entrepreneurial ecosystem, the project ultimately resulted in substantial financial losses, displacement of communities, and failed urban planning ambitions. This case study underscores the complexities of state entrepreneurship at the local level, where political motives, limited information, and the pursuit of voter support can diverge significantly from entrepreneurial objectives, leading to outcomes that are detrimental to both the city’s economic health and its residents. By comparing New Haven’s experience with broader critiques of the entrepreneurial state, this paper contributes to a nuanced understanding of the potential and pitfalls of government-led economic development initiatives.

Date: 2024
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DOI: 10.1080/26437015.2024.2338177

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