Year: 2019
Publication: Queens University Belfast
People living in deprived areas can face barriers to entrepreneurship, which may be reduced through policy intervention. This study aims to examine the relationships between deprivation, entrepreneurial skills, networks and social attitudes. We also examine the relationship between these factors and entrepreneurial behaviour.
The study draws data from the UK Global Entrepreneurship Monitor (GEM) collected between 2011 and 2017. We focus specifically on Northern Ireland. The GEM data is matched to area level deprivation data. Logistic regression is used to study the relationships between deprivation and entrepreneurship.
People living in deprived areas perceive they are less likely to have the skills to start a business, and are less likely to know someone who has started a business in the past two years. These factors are also found to be related to entrepreneurial behaviour. In terms of social norms, they are also more likely to perceive that other people would view starting a business as a good career choice. We also find some evidence that people living in deprived areas are less likely to engage in entrepreneurial behaviour.
Policies could focus on reducing the barriers to entrepreneurship. Entrepreneurship could act as a means of reducing individual and area level deprivation, by providing opportunities for those living in deprived areas. The main limitation is the use of single item measures.
Our study makes theoretical and practical contributions to the literature focusing on entrepreneurship and deprivation, and draws on a novel dataset and context.