Many disadvantaged neighbourhoods are characterised by low levels of business start-up and survival. Some groups within the population are particularly underrepresented, including women and some BME communities. The reasons for this include the absence of an entrepreneurial culture, the difficulties of trading in low wage economies, barriers in raising finance for start-up and expansion and not enough accessible business support of high quality.

Responses have been many and varied. Neighbourhood renewal partnerships need to ensure that their response fits in with what others are providing, and is tailored to meet the distinctive needs of local communities.

Creating new and better jobs for residents of deprived areas is fundamental to success in neighbourhood renewal strategies. This requires support for existing businesses and encouragement for start-ups and social enterprise.

The research highlights statistical comparisons which show that there is less enterprise activity in deprived areas than in the rest of the country; these same areas have unrealised potential in business development.

The paper explores the causes of a lack of 'enterprise culture' that prevails within many communities by reviewing evidence from the Bank of England, the Policy Action Team report on 'Enterprise and Social Exclusion' (PAT3) and consulting with the Small Business Service.

Initiatives used to promote business start-up and business development are explored highlighting instances of best practice.

The paper provides a promoting enterprise checklist at the end of the overview aimed to aid the reader in their strategies for business development in deprived communities.

Themes include:

Renewal.net

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01/08/2002

Renewal.net

research

Urban Policy > Economy knowledge & employment > Urban economy

Business support, Employment