Enterprise profiles in deprived areas: Are they distinctive?

Abstract

This paper examines the extent to which segmenting business activity on the basis of the relative deprivation of a given area provides additional understanding (in terms of analysis and policy) that is not obtained by alternative divisions, e.g., by sector, size, etc. The paper is primarily motivated by the explicit inclusion of a deprived area dimension to many UK small business/enterprise policies introduced since 1997. We use two datasets drawn from the customer records of Barclays Bank PLC to obtain an initial analysis of the business stocks and dynamics in deprived and non-deprived areas of England. The data indicate that the deprived areas of England vary systematically from the wider economy in terms of several business stock characteristics and associated dynamics. These differences include a lower proportion of business service firms, lower female involvement in the owner-manager base and a poorer risk profile. The analysis supports the view that there are likely to be benefits from the tailoring of small business/ enterprise policies to sub-national levels. Copyright © 2010 Inderscience Enterprises Ltd.