Many European countries are implementing austerity measures alongside trends of welfare state retrenchment. Entrepreneurial forms of active citizenship are considered as a new form of public management to fill gaps left by spending cuts and to continue neighbourhood regeneration. Inspired by British practices, Dutch citizens are trying to set up community enterprises (CEs) to provide services or other benefits for residents in deprived neighbourhoods. Based on a qualitative panel study, this article reveals supportive responses but also resistance from local governments and housing associations. Within a positive policy discourse on co-production, institutional responses often encompass forms of ‘counter-production’ that hold CEs in full uncertainty about crucial conditions for their business.
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