Doubly disadvantaged: gender, community deprivation and entrepreneurial activity

This study examines the contingent role of local multiple deprivation on the relationship between individual capital (human and financial) and entrepreneurial growth aspirations. This is interesting theoretically, because there are two contradictory perspectives on how deprivation influences human and financial capital investments towards entrepreneurship growth. On the one hand, social exclusion theory suggests that in areas of deprivation, external resource support will be less available for entrepreneurs owing to insufficient disposable resources in the region, thereby weakening the prospects of translating individual human and financial capital into entrepreneurship growth (Rouse & Jayawarna, 2011; Sen, 2000). On the other hand, capital theory proposes that better resourced individuals (human and financial capital) are more likely to pursue entrepreneurship growth even in areas of deprivation because they are capable of spotting opportunities (Becker, 1994; Bourdieu, 1986) and resource advantages within those settings. For instance, entrepreneurs with higher levels of individual capital will be able to take advantage of cheaper labour and physical costs in areas of deprivation (Corak, 2013; Stiglitz, 2012). We use a developed economy context (UK) in a post-recession period (2007-2012) to test these contradictory views.