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Franz Flögel and Stefan Gärtner

This chapter approaches deprived neighbourhoods as a resource for business activities. It develops the concept of ‘spatial enterprise’ based on non-traditional entrepreneurial concepts that do not incorporate space (for example, the social enterprise concept). It discusses whether, and in which ways, underused spaces are an important resource for the success of enterprises in deprived urban neighbourhoods. The formation, development and impact of enterprises in deprived neighbourhoods in two German cities are investigated. The eight case studies show that insufficiently used spatial resources, for example an abandoned church, are important for the formation and success of enterprises in these areas. Place-based networks are relevant in most, but not all, cases. Social impact in the neighbourhoods was created by the acquisition and re-use of vacant buildings, the organisation of cultural events, the supply of services for specific local demands, or support for socially disadvantaged people. The chapter concludes that spatial enterprises help improve and stabilise deprived neighbourhoods, because they can gain advantages from apparently disadvantaged neighbourhoods, and these enterprises create social impact in deprived neighbourhoods in return.