Fix or fixation? The contributions and limitations of entrepreneurship and small firms to combating social exclusion

Entrepreneurship and the determinants of firm survival within regions: human capital, growth motivation and locational conditions

“…Although entrepreneurship has been seen as a potential solution for long term persistent unemployment, others have noted that its potential to overcome deprivation as a whole may be limited (Blackburn and Ram 2006;Thompson, Jones-Evans, and Kwong 2012). Lower opportunity costs for the unemployed may make entrepreneurial entry more attractive (Evans and Leighton 1989), but studies also find that exit is more likely (Gray 1990), as the unemployed are likely to have access to fewer resources and will be less aware of the opportunities that are available (Arenius and De Clercq 2005).…”

“…As entrepreneurs generally tend to create ventures close to their homes (Mueller and Morgan 1962;Sorensen and Audia 2000), it is likely that successful entrepreneurs will generate greater levels of local economic development (Blackburn and Ram 2006). Furthermore, there is evidence that those areas with higher rates of GVA growth and employment growth have higher firm survival rates (North et al 2003;Fritsch, Brixy, and Falck 2006):…”

Unravelling the nexus between entrepreneurship, neighbourhoods and communities – introduction

“…The latter form of social capital is highly dependent on social networks that transcend neighbourhoods and connect through (less intimate) social ties to people that can provide access to resources that are helpful for entrepreneurship. In contrast, many entrepreneurs in deprived neighbourhoods who build upon their strong social bonds with other people on low income, are often locked into markets that offer limited opportunities for business development (Blackburn and Ram, 2006;Syrett and North, 2008).…”

“…Policymakers across Europe have turned to fostering entrepreneurship in deprived neighbourhoods and communities, for example as a means to bring young people out of unemployment back into work (OECD, 2003;Welter et al, 2008), especially since the great economic crisis of 2007(Fairlie, 2013. Entrepreneurship is considered a key element in enhancing local economic development through job creation and increased productivity, as well as ensuring greater social inclusion (Williams and Huggins, 2013, 166; see also Blackburn and Ram, 2006;Syrett and North, 2008). Policymakers and researchers have not only been interested in individuals in deprived areas but also in how forms of community-based entrepreneurship may benefit people, places, and more generally, the 'common' good locally (Peredo and Chrisman, 2006;Somerville and McElwee, 2011).…”

Entrepreneurship and the Role of Policy

“…Indeed, as entrepreneurship is itself multifaceted, policy responses to enterprise are varied and wide-ranging (Mole and Bramley, 2006). The pervasiveness of enterprise policies has led to the policy 'fad' of uncritically advocating that entrepreneurship is a key route for improving individual and societal economic development (Blackburn and Ram, 2006). Yet the effectiveness of policy is often debated, and, in an age of austerity, understanding which interventions are most likely to be effective is more important than ever.…”