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

Robert Lee, Heinz Tuselmann, Dilani Jayawarna , Julia Rouse

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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.
Original languageEnglish
Pages (from-to)1054-1072
JournalEnvironment and Planning C: Government and Policy
Issue number6
Publication statusPublished - 2011

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