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

Abstract

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.

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