Abstract
Promoting entrepreneurial self-efficacy in residents of deprived areas to boost economic outcomes may be problematic as human capital levels are generally lower. Theoretical perspectives from combining models of entrepreneurial intention and search are sought. Utilizing different data, this study then investigates whether increasing different types of human capital facilitates entrepreneurial intention through entrepreneurial self-efficacy in deprived areas. Attention is also paid to the interrelations between human capital development, entrepreneurial self-efficacy and deprived contexts. Specific human capital is found to be a more important factor enhancing entrepreneurial self-efficacy. Other factors that are deeply embedded in deprived areas are also revealed to generate a vicious circle between local residents’ human capital, entrepreneurial self-efficacy and local contexts. This explains why entrepreneurial performance is not consistent with policymakers’ expectations and highlights the need for policies to focus on a wider variety of skill development to provide the correct combination within this context.