Enterprise in deprived areas - what is the relationship?

Objectives: This paper examines enterprise and its propensity to reduce the impact of area deprivation. The paper asks how the former can cure the latter and questions why enterprise and entrepreneurship policies are targeted at communities in areas of multiple deprivation. Prior Work: There exists a vast index of literature on the success factors required for entrepreneurship to bring for instance, an increase in innovation, employment, productivity and economic growth. In spite of this accepted knowledge there has developed an increasing belief that deprived areas can be turned around with more start-ups and entrepreneurial activity. It has also been argued that start-up rates in deprived areas are exceptionally low and in some way this concurs with the volume of studies highlighting the plight of residents of multiple deprivation areas. Enterprise policies aimed at deprived areas therefore appear to be a stimulant to try to alleviate the economic and social burden in these communities. Approach: A qualitative approach is adopted, focused on Merseyside – a designated Objective I sub-region – and a series of semi-structured recorded interviews with a wide range of policy makers and practitioners and other interest groups undertaken. Results: The paper presents contrasting discourses on why and how enterprise, entrepreneurship and deprivation become associated. Initial interpretation would suggest that those involved in supporting enterprise in deprived areas believe they are making entrepreneurship an option for significantly more individuals, although tend to display uncertainty when enterprise is presented as a means of reducing social exclusion. Implications: For enterprise policies to be effective and efficiently implemented there needs to be a clarification of objectives. Without continuous critical reflection enterprise promotion will continue to be used to excuse failings currently outside the control of most deprived communities. The vagueness of whether enterprise support is warranted to help achieve social and economic inclusion may well be contradictory to the pursuit of economic growth and innovation. Value: The originality of this paper lies in the proposition of simple questions concerning why ‘push’ enterprise policy onto certain selected communities and how we know this is beneficial