Entrepreneurship Is Most Effective Way To Rehabilitate Former Prisoners In Society, But More Support Is Needed, Research Shows

Former prisoners stand a strong chance of successfully reintegrating to society if they are able to pursue entrepreneurship as a career option, according to new research from Durham University Business School and Leeds University Business School.

However, there is a distinct lack of structure and support available for them to do so.
The study, conducted by Pablo Munoz, Professor of Entrepreneurship at Durham, alongside Dr Lee Wainwright of the University of Leeds, shines a spotlight on the challenges former prisoners face in rebuilding their lives and careers after returning to society, and the shortcomings in rehabilitation support.

Conducted via “life story research” over six months, the study follows the journeys of ten former prisoners who had engaged in entrepreneurial activities within prison and attempted to continue to do so following their release. By interviewing them over the course of this transition, the researchers could develop graphical timelines of the key events impacting upon their reintegration to society and experiences in rebuilding their entrepreneurial identities.

This transition, the researchers note, is fraught with hurdles. From enduring stigma limiting career and social opportunities to the impact of psychological adjustments.

But a number of difficulties arise as a result of personal agency, which refers to an individual’s capacity to act independently and influence their social context. Whilst it’s assumed that personal agency is restored when former prisoners move away from the highly controlled structure of prison, the study shows the opposite is true.

Professor Munoz says;

“The social, cultural, or economic status of former prisoners is typically at odds with dominant societal norms, values, and beliefs. When it comes to traditional employment, many find their options severely limited due to employer stigma, lack of access to networks, and broken supportive family ties. As a result they have less control.”

Successful rehabilitation, he states, is dependent on former prisoners being able to regain a means of rebuilding their lives. Entrepreneurship can remove some of these barriers, providing a means for employment and for establishing a greater sense of personal agency. But it’s not always easy for such individuals to establish themselves in this manner.

Prof Munoz continues;

“Entrepreneurship is often seen as a silver bullet to social issues, offering a pathway to social mobility and inclusion for vulnerable individuals, who are at risk of marginalisation or exclusion from society. However, securing entrepreneurial agency depends on several factors: ability, motivation, opportunity and supportive institutions. For at-risk individuals these conditions are often severely constrained by social structures.”

With limited options for support, and little structure to help frame and develop their ambitions, some former prisoners can find it extremely difficult to establish or grow their personal agency.

Dr Lee Wainwright, co-author of the study, highlights the complex relationship between incarceration and entrepreneurship:

“While in prison, individuals engaging in entrepreneurship often gain a new status—one that acknowledges their potential and provides them with a structured system of support and endorsement. However, upon release, this support system disappears, leaving many struggling to maintain their entrepreneurial identity. In some cases, former prisoners find themselves recreating restrictive contexts—either psychologically or socially—to regain a sense of self and continue into self-employment.”

The study recommends “Restorative Entrepreneurship” as a concept and framework to better address these challenges.

“Restorative Entrepreneurship refers to a set of entrepreneurial practices and a system of support that enable individuals at-risk to reconstruct their identity, sense of ownership and self- worth and engage in progressively autonomous rehabilitative life projects, away from deviant behaviour and out of detrimental and stigmatizing circumstances,” explains Prof Munoz. “More than merely fostering economic activity, it connects individuals’ mindsets, skills, decisions, and actions with supportive entities such as family, local organisations, and broader societal institutions.”

By maintaining a delicate balance of encouraging the freedom of entrepreneurial vision whilst also replicating the supportive structures they experienced in prison, ventures and entrepreneurs stand a better chance of flourishing, reducing the likelihood of reoffending and contributing to a better society.

In providing such support, the researchers advise policymakers to consider;
- Government programmes offering phased, scaffolded support such as transitional housing schemes and dedicated work placements, to reinforce routines and discipline before moving towards fully autonomous entrepreneurship.
- Targeted funding, micro-loans, and guidance on financial literacy or business planning, to help ex-offenders accumulate the economic and social capital necessary for entrepreneurial success.
- Psychological support such as mentorship programmes—that foster resilience, motivation, and confidence.

Lastly, tailoring services to individual needs and circumstances will help ensure that agency is sustainably enabled, reducing the long-term social costs of recidivism and contributing to safer communities overall.

The study “Enabling Agency In Constrained Contexts: How Restorative Entrepreneuring Supports Reintegration Post-Incarceration” is available to read in the International Small Business Journal.

/ENDS

For further information please contact Kerry Ruffle at BlueSky Education – kerry@bluesky-pr.com / +44(0)1582790701