When the state becomes the entrepreneur: ethical failures in New Haven's chapel square redevelopment

Abstract

Purpose We discuss the role of ethics in both the entrepreneurial state and governments' development of entrepreneurial ecosystems. This is a topic to which scholars have paid little attention in the scholarly literature despite the negative impact that policy can have on generally disenfranchised groups. Design/methodology/approach We use the historical case method to examine the Chapel Square Mall redevelopment in New Haven (1954–1979), drawing on primary sources (archival documents, government records) and secondary literature (urban planning, entrepreneurial ecosystems and public choice theory). We combine insights from urban studies, political economy and entrepreneurship research to assess government's role in entrepreneurial ecosystem shaping. Findings Our findings include that government-led redevelopment often creates gains for economic elites at the expense of marginalized citizens' rights that “public benefit” narratives justify. In addition, exclusion, not just collaboration, can shape entrepreneurial ecosystems, especially when efficiency is pursued without justice. We challenge the romantic view of government as a neutral enabler, arguing that governments act with interests, biases and unintended consequences. Originality/value We add a discussion of ethics into entrepreneurial ecosystem research by blending moral philosophy to critique policy beyond economics by offering a place-based historical analysis.