Social Capital and Entrepreneurship: Does the Relationship Hold in Deprived Urban Neighbourhoods?

Abstract

The aim of this paper is to examine the relationship between social capital and entrepreneurship in deprived urban neighbourhoods (DUNs). While there is a great deal of research on social capital, its usage and value in deprived areas is an under‐researched topic. Drawing on survey data, it is found that social capital in the form of network ties within a DUN is linked to how entrepreneurship develops in these places. The breadth and variety of network ties that individuals are able to identify as sources of advice is related to the probability of considering an entrepreneurial career, and is even more strongly related to the conversion of entrepreneurial intentions into full engagement. If entrepreneurship is to be harnessed in DUNs a starting point is the enhancement of initiatives for developing social capital incorporating local businesses, residents, and local government agencies.

Effects of structural, relational and cognitive social capital on resource acquisition: a study of entrepreneurs residing in multiply deprived areas

“…Entrepreneurship in multiply deprived areas is a very specific and particularly challenging spatial context (DeClercq and Honig, 2011; Williams, 2009, 2011;Trettin and Welter, 2011;Welter, 2011). The usage of social capital by entrepreneurs residing in multiply deprived areas to acquire valuable resources is under-researched (Williams et al, 2017), with empirical studies primarily focusing on the relevance and importance of structural social capital. Effects of relational and cognitive social capital is treated as an afterthought (Foley and O'Connor, 2013;Kerr and Dyson, 2016).…”

“…Entrepreneurs suffering from the challenges associated with multiple deprivation and social exclusion draw on close bonds to access moralistic and durable informal support (Anderson and Miller, 2003;Lee et al, 2011;Shortall, 2008). Indeed, the most common source of support for entrepreneurs' residing in multiply deprived areas is close family and friends (Blackburn and Smallbone, 2014;Williams and Huggins, 2013;Williams et al, 2017).…”

Capital Social E Empreendedorismo: A Influência Das Dimensões Offline E Online Aos Empreendedores Iniciais

“…Salientam Afandi, Kermani and Mammadov (2017, p. 687) como a "teoria do capital social tem feito incursões significativas nas pesquisas sobre empreendedorismo"; como "o capital social é um elemento chave para o desenvolvimento do comportamento empreendedor". Apesar disto, isto é, a despeito da relevância do capital social ao empreendedorismo, ainda prevalece sobre a literatura da área a ausência de núcleo teórico consolidado (Hoang & Antoncic, 2003;Smith, Smith, & Shaw, 2017;Williams, Huggins, & Thompson, 2017). Salientam Smith, Smith and Shaw (2017), por exemplo, como a área tem sofrido com falta de precisão e consistência; como seria importante "aprofundar-se na miríade de definições que [são] empregadas para identificar e explicar os fenômenos que podem ser considerados como constituindo capital social" (Williams, Huggins, & Thompson, 2017, p. 2).…”

O “Problema da Imersão” nos Estudos do Empreendedorismo: Uma Proposição Teórica

“…Ferrary and Granovetter (2009), in turn, emphasize how the "success of a startup does not result only from the quality of the entrepreneur …, but also from its embeddedness in complex social networks" (p. 337). Finally, Williams, Huggins and Thompson (2017) argue how entrepreneurship is "inherently a socialized process based on informal social networks that provide valuable resources" (p. 719).…”