Nexus Between Entrepreneurship, Neighbourhoods and Communities

Until recently, entrepreneurship and neighbourhood studies were separate academic disciplines which rarely interacted with each other. However, recent macroeconomic and societal trends have pointed the spotlight on the nexus between entrepreneurship, neighbourhoods and communities, highlighting not only the importance of ‘the local’ in entrepreneurship but also the huge gaps in our knowledge base regarding this tripartite relationship. This essay aims to explore this relationship in detail, discussing the importance of neighbourhoods and communities in entrepreneurship, the current state of research, and the potential for future development.

Neighbourhoods and communities play a crucial role in entrepreneurship. They provide the social, economic, and cultural context in which entrepreneurial activities take place. The local environment can influence the availability of resources, the level of competition, and the demand for goods and services. For example, a vibrant and diverse community can provide a rich source of ideas and talent for entrepreneurs. Additionally, the social networks within neighbourhoods and communities can facilitate the exchange of information, resources, and support, which are essential for entrepreneurial success.

Despite the growing evidence on the importance of the neighbourhood, entrepreneurship studies have rarely ‘scaled down’ to cities and neighbourhoods, including the residential context of where entrepreneurs live. Most research on entrepreneurship, firm formation, and innovation compares entrepreneurial activities, ambitions, and policies between countries or investigates entrepreneurship in a regional context. This has led to a significant gap in our understanding of the relationship between entrepreneurship, neighbourhoods, and communities.

Social networks are a key factor in the relationship between entrepreneurship and neighbourhoods and communities. They provide a means for entrepreneurs to access resources, share information, and build relationships. In many cases, these networks are based on trust and reciprocity, which can facilitate the exchange of resources and support. For example, a study in Shanghai found that enclosed neighbourhood commons play an important role in increasing residents’ willingness to participate in collective decision-making and action-taking. This suggests that the social networks within neighbourhoods and communities can have a significant impact on entrepreneurial activities.

The characteristics of neighbourhoods and communities can also have a significant impact on entrepreneurship. Factors such as poverty, crime, and social deprivation can create barriers to entrepreneurial activities. However, entrepreneurship can also play a role in transforming these areas by creating jobs, stimulating economic growth, and improving social conditions. For example, a study in Wales found that the safeguarding of children in neighbourhoods is influenced by the social networks and community actions within those areas. This highlights the importance of understanding the complex relationships between neighbourhood characteristics, social networks, and entrepreneurial activities.

There is a need for further research to explore the relationship between entrepreneurship, neighbourhoods, and communities. This research should focus on understanding the social, economic, and cultural factors that influence entrepreneurial activities at the local level. Additionally, there is a need to develop new methods and approaches for studying this relationship, such as using mobile interviews to explore the spatial and social dimensions of entrepreneurship. Finally, there is a need for interdisciplinary research that brings together scholars from entrepreneurship studies, urban geography, housing studies, political studies, sociology, and urban planning.

The relationship between entrepreneurship, neighbourhoods, and communities is a complex and important area of study. Recent trends have highlighted the importance of ‘the local’ in entrepreneurship, but there is still much to learn about this tripartite relationship. Future research should focus on understanding the social, economic, and cultural factors that influence entrepreneurial activities at the local level, developing new methods and approaches for studying this relationship, and promoting interdisciplinary research. By doing so, we can gain a better understanding of the role that neighbourhoods and communities play in entrepreneurship and develop policies and strategies that support local economic development and social cohesion.