Purpose: To examine empirically a previously overlooked aspect of entrepreneurship: community "dis-entrepreneurship". Through the lens of political and historical theory, the authors propose learning from unusual circumstances of failure in order to inform social policy regarding factors that facilitate community entrepreneurship.

Design/methodology/approach: The paper draws on political and economic theory, formulating propositions that are tested using interpretive methods.

Findings: Strong patron-client relations were found to negatively impact the formation of diversity and meritocracy necessary for entrepreneurial environments to thrive. They also account for an inward orientation that negatively influenced investments in infrastructure. Path dependent processes were found to hold sway regarding the stability of political/social norms.

Originality/value: This is the first paper of which the authors are aware that considers issues related to community dis-entrepreneurship. The paper highlights the importance of effective community leadership.