It's been brought up numerous times before, how the pirate factions are more than just pirates, since they also control a region of space. But I was thinking of an analogy to better illustrate/illuminate the topic, going with references from The Burning Life.
Let's take the Angel Cartel, which controls Curse. From in-game visuals only, there is only one "developed" world in Curse, which is Utopia III. From TBL, we get an insight into what life is like in these regions. From the sounds of it, their levels of development are frontier/colonial, as you would expect from nullsec. Pirate faction missions also mention a "Tribute" system, which is used to keep these territories down and undeveloped in return for protection. They're not permitted weapons or some such, so they're not a threat to the Cartel/whoever.
It effectively sounds like an oligarchy/junta. If you're connected to the 'establishment' (Cartel, Guristas, Serpentis etc.), you're made. Otherwise, you just live in some frontier/undeveloped settlement under the aegis/iron fist of the pirate faction. The oligarchy has no interest in developing a formal system of government, an administration, a bureaucracy, or whatever, nor is it interested in developing an economy or infrastructure. It is only interested in expanding its own power and influence for the benefit of those within the oligarchy, and cares little for those outside of it within their territory (unless you choose to sign up). You can probably live a long life in these pirate regions, but I'd expect living standards worse than those in the empires, and very isolated lives with little opportunity for space travel. Those apart of the Angel Cartel probably have their main residences on Utopia III, along with their families, and so forth. Probably a planet-wide Omega sort of place.
You can probably live much more freely than anywhere in the empires, with no bureaucracy or government footprint. However, without a legal system or social contract of any kind, nothing's stopping the owners from coming down and messing with you, maybe dragging you up into space as a crewman. If you're a pretty woman, you might end up a slave for a warlord, or some such.
A pseudo-anarchy of some sorts. Perhaps like Somalia. It's an area of space where people live, no formal government or economy or anything of the sort, but a powerful group of warlords that keep things relatively stable. Just don't mess with them, and lock your doors when they come down for their tribute.
An idea I had, figured I'd throw it out there. NPC nullsec as the "third world" of EVE (excl. Sansha's Nation).