In 2014, Whitney Wolfe Herd resigned from her position at the dating app Tinder, having encountered workplace sexism, and set out to establish her dating platform to empower women within the dating sphere. As Bumble approaches its tenth anniversary, Herd’s initiative stands as a testament to how entrepreneurship can serve commercial objectives and assist marginalised groups in overcoming systemic barriers. This insight comes from a recent study by Rowena Crabbe, an assistant professor of marketing at Texas McCombs.

Marginalised groups are defined by their frequent disenfranchisement due to prevailing social and economic frameworks. Such groups include people of colour, women, LGBTQ+ individuals, those with disabilities, older adults, and low-income individuals. In the specific case of Bumble, the focus was on women navigating the dating world. Crabbe highlights that Wolfe crafted a product that addressed the needs of this group, allowing her to sidestep the discrimination she faced and leverage her social connections.

Despite Whitney Wolfe Herd’s challenges with sexism in the tech industry, she utilised her intersecting identities—her race, socioeconomic background, and educational attainment—to navigate her entrepreneurial journey. As Crabbe points out, marginalised groups are not homogeneous; their experiences and resources can vary significantly within the group.

Crabbe’s research emphasises entrepreneurship as a potential avenue for liberating women, people of colour, and other low-status individuals from underpaid and undervalued labour. She defines emancipation as breaking free from or mitigating structural limitations. However, societal and economic hurdles can frequently impede this progress. The research conducted by Crabbe, alongside co-author Alexander Lewis from the University of Texas at San Antonio, identifies factors enabling marginalised entrepreneurs to achieve their business aspirations and emancipation.

Although the paper is theoretical and refrains from offering explicit advice, it incorporates startup narratives to exemplify conditions conducive to success. Crabbe notes that real-world stories enhance the theoretical foundations of their study.

The research also explores self-employment as a more fitting alternative for some individuals than organisational employment. Chris Tidmarsh, an environmental scientist with autism, found that his condition affected his ability to function in traditional work settings. By founding his aquaponic farm, he could operate beyond these constraints. Similarly, Collette Divitto, who has Down syndrome, faced challenges in the job market but managed to harness her resources, including her degree from Clemson University, to open her bakery.

Moreover, the paper discusses how marginalised consumers often require innovative products. For instance, Robert Braun, who suffered from spinal muscular atrophy, invented a wheelchair lift in 1970, founding Braun Corporation (now BraunAbility), which pioneered vehicular mobility solutions for others with similar disabilities.

Additionally, entrepreneurship can transform barriers into opportunities. Tony Aguilar, a Mexican American entrepreneur in financial technology, used his personal experience with student debt to develop Chipper, an app designed to assist graduates in managing and refinancing their loans. He also advises other marginalised entrepreneurs on engaging with potential investors.

However, as Crabbe notes, not every business endeavour leads to emancipation. Market pressures and resource shortages can pose significant obstacles. A business is deemed emancipatory when it aligns more closely with the entrepreneur’s interests and values than a traditional employer, offering autonomy, financial resources, or an escape from discrimination.

Crabbe categorises the outcomes that can promote emancipation into three groups: businesses that reflect the entrepreneur’s values, products that address the unique needs of disadvantaged consumers, and processes that reduce barriers for other entrepreneurs.

In summary, by outlining a structured approach to understanding startups and overcoming challenges, Crabbe hopes her research will prove valuable and practical, particularly for policymakers aiming to enhance entrepreneurship among marginalised groups.

More information: Alexander Lewis et al, The entrepreneurship of marginalized groups and compatibility between the market and emancipation, Journal of Business Venturing. DOI: 10.1016/j.jbusvent.2024.106408

Journal information: Journal of Business Venturing Provided by University of Texas at Austin