Breaking the cycle of crime: Promoting the positive social spillover potential of entrepreneurship

Entrepreneurship can result in many positive economic effects, but is it possible that entrepreneurship can also have positive social spillover effects such as helping to reduce crime and violence? This paper explores the question in the context of the city of Baltimore, Maryland, which has experienced a significant rise in violent crime in recent years, as well as the efforts of Innovation Works, an incubator that is attempting to educate, mentor, and fund entrepreneurs within this challenging context. Based on that incubator's insights as well as perspectives from the fields of sociology, psychology, and entrepreneurship, this paper suggests that entrepreneurship can have positive social spillover effects including reduced crime, recidivism, and economic inequality, as well as increased social capital, community trust, and optimism. We examine how incubators can promote positive spillovers, and also provide recommendations for cities and incubators that are struggling in similar contexts to those of Baltimore.