New business creation and regional development: Enhancing resource acquisition in areas of social deprivation |
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| Authors: | Dilani Jayawarna Oswald Jones Allan Macpherson |
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| Institution: | 1. University of Liverpool Management School , Chatham Street, Liverpool L69 7ZH, UK d.jayawarna@mmu.ac.uk;3. Centre for Enterprise and Entrepreneurial Leadership, University of Liverpool Management School , Chatham Street, Liverpool L69 7ZH, UK;4. Leicester Business School, De Montfort University , Leicester LE1 9BH, UK |
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| Abstract: | Over 7 years, the UK-Government funded an entrepreneurship scholarship scheme in the most deprived regions of England. This study examines how, for 211 of these nascent entrepreneurs, bootstrapping compensated for their inability to obtain debt or equity funding. Results show that social capital (strong, weak and brokerage ties) is important for access to bootstrapped resources. While human capital, including previous business experience and financial skills, are linked to joint-utilisation approaches to bootstrapping, higher financial investment is linked to owner- and payment-related approaches. A key outcome for developing appropriate regional policy is that ‘brokers’ provide a link between socially disadvantaged entrepreneurs and external resources. |
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| Keywords: | bootstrapping brokerage business start-up entrepreneurs financial capital human capital social capital |
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