COVID-19 has greatly impacted Black, Indigenous, and people of color (BIPOC) entrepreneurs. ResilIENT examined how these entrepreneurs enacted resilience during the first wave of the pandemic.
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BIPOC Entrepreneurs' Pandemic Experiences.pdf
1. BIPOC Entrepreneurs’ Transition
and Resilience during the First
Stage of COVID-19 in Metro
Detroit
Rahul Mitra
Allison Lucas
Jeremy Peters
Wayne State University
2. Rationale
• COVID-19 was a huge shock for entrepreneurs, especially
BIPOC small business owners (Beer, 2020;Farrell et al., 2020);
Detroit emerged an early hot spot during summer of 2020
(CDC, 2020)
• BIPOC entrepreneurs face significant structural barriers, are
deeply dependent on and influence communities of color…
and broader US society (e.g., Bates et al., 2018; Hasecki et al., 2020;
Jennings, 2017)
• RQ: How did BIPOC entrepreneurs in Metro
Detroit enact resilience during the first wave of
the COVID-19 pandemic?
3. Entrepreneurs and Resilience
• Entrepreneurial effectuation and crisis
– Narrative of “crisis as crucible” for entrepreneurship;
perhaps more so for BIPOC and other marginalized
entrepreneurs (Bruton et al., 2021; Gill, 2014;Jones, 2017;Nair &
Chen, 2021;Sarasvathy, 2008)
– Outcomes of crisis often reduced to success or failure,
or focus on the entrepreneur as an economic unit rather
than a holistic individual embedded in a community
(Ayala & Manzano, 2014;Bullough et al., 2014; Hartmann et al., 2022)
• Resilience
– Resilience as trait, state and process (Bachay & Cingel, 1999)
– Trauma-informed perspectives see resilience as pattern
of positive adaptations to adversity (Hernandez et al., 2007)
4. …Entrepreneurs and Resilience
• Resilience as communicative process
– Need to be wary of the “medicalization” of trauma,
especially in underserved groups (Madsen & Abell, 2010;
Rothenberg, 2012); hence, focus on the dynamic
negotiation of contexts (Luthar et al., 2000;Richardson 2002)
– Resilience as meaning-making accomplished through
everyday messages and stories that enable reintegration
from life’s disruptions (Lucas & Buzzanell, 2012)
– Five interrelated communicative processes: crafting
normalcy, affirming identity anchors, using
communication networks, using alternative logics, and
foregrounding productive action (Buzzanell, 2010, 2018;
Wilson et al., 2021)
5. Process
• Public humanities project, with the goal of saving
these stories for the community to access
• Oral history interviews focus on lived experience
(Ritchie, 2015)
• 9 interviews collected so far, from individuals
owning hair/cosmetics businesses, gyms, antique
stories, restaurants, clothing businesses, lifestyle
coaching, and writing/publicity; 15 anticipated
• Analysis ongoing, using Corbin and Strauss’ (2014)
version of grounded theory
6. Findings: Challenges
Long Term Structural
Challenges
• Funding and resource gap
for BIPOC entrepreneurs
• Complex bureaucratic and
legal hoops
• Population segregation and
urban sprawl
Pandemic Challenges
• Uncertainty and fear about
social and health impacts
• Understanding and enacting
government mandates
• Technology pivot
• Managing client and
employee expectations
• Adequate number of
employees
• Less demand for products
(in some cases)
7. Findings: Resilience Practices
Crafting Normalcy
• Obstacles are framed as part of the “new normal”
• E.g., Mark/Thea and Reva accepted that their fitness businesses had to keep pace
Affirming Identity Anchors
• Draw on ethnic, racial or national identity as a source of strength and pride
• E.g., Ty launched new line of products supporting Black Lives Matter and queer rights
Maintaining and Forging CommunicationNetworks
• Old and new networks help with support and resources
• E.g., Kwaku helped found the Detroit Black Restaurant League for food business owners
Using Alternative Logics
• Reframe crisis as opportunity or minor inconvenience
• E.g., Jade embraced shutdowns because it drove up her overall revenues through digital sales
Foregrounding Productive Actions
• Recognize and feel negative emotions, but focus on or redirect toward positive actions
• E.g., Pamela helped serve other BIPOC entrepreneurs with their global/tech outreach pivot
8. Ongoing Analysis
Psychosocial factors
+
Structural/Pandemic
Challenges
Resilience
Communication
Restraints on
Response-ability
Outcomes
Reva was “stuck at home” and felt
isolated, compounded by the forced
shutdown of businesses and restrictions
on class sizes, so that “business as usual”
was loss-making. She credits a strong work
ethic, cultivated by a lifetime of
memorable messages from family and
friends (e.g., “closed mouths don’t get
fed”), strongFaith in her Church, and her
family members stepping up to help her
pivot her business. She found new ways to
train clients (e.g., virtual workouts, body
weight, home equipment, small groups),
invested in social media usage and
analytics, and applied for external funding.
She still saw a drop in clients and so
reduced pricing further, nor did she
receive grant/loanfunds. She continued to
apply for funds, though, and her business
managed to stay open, emphasizing body
positivity for Black women.
9. Closing Comments
• BIPOC entrepreneurs are crucial to the
entrepreneurial ecosystem and country’s economic
and cultural fabric, yet largely underserved. They are
dynamic, resourceful and resilient.
• Targeted programs and incentives at local, state and
federal levels are vital to support this community
• Resilience for BIPOC entrepreneurs transcends
simplistic “stay”, “sink” or “grow” outcomes.
Entrepreneurial support programs and policies must
reconceive of them as complex and connected human
beings, rather than impersonal “job-creators”.