Is Entrepreneurship a Route Out of Deprivation?

Abstract

This paper investigates whether entrepreneurship constitutes a route out of deprivation for those living in deprived areas. Our measure of income/wealth is based on analysis of improvements in an individual’s residential address. Our data consist of information on over 800,000 individuals, and come from the customer records of a major UK bank. Comparing business owners to non-owners, our results suggest that the benefits of business ownership are found across the wealth distribution. Hence entrepreneurship can be a route out of deprivation.

Keywords: Deprived Areas, Entrepreneurship, Public Policy, Housing, Deprivation

JEL Classification: J23, M13, R23