From adversity to advancement: uncovering how race and class shape Black tech entrepreneurial experiences

Abstract

Abstract Black people in the technology industry face various barriers, from encountering micro-aggressions from their coworkers to facing blocked advancement in their professional careers. These challenges are particularly pronounced in entrepreneurship, where Black founders receive just one percent of all venture capital funding. But amidst these shared struggles, questions arise as to what ways, if any, these experiences vary. Using an intersectional lens to inductively study forty-six Black tech entrepreneurs in Silicon Valley, I reveal how class shapes Black entrepreneurial processes differently at various phases of entrepreneurship. Lower- and middle-class Black entrepreneurs faced more financial and network-based obstacles as they struggled to raise money from family and friends and had fewer effective networks when starting their businesses. Conversely, Black upper-class entrepreneurs had familial wealth and personal networks that aided their entrepreneurial efforts but faced challenges as they were not a “racial fit” within the industry. Consequently, they perceived that they confronted more instances of individual-level discrimination. Black lower and middle-class entrepreneurs were less likely to discuss instances of perceived individual-level discrimination because many had not reached the step of meeting with an investor. This research offers unique and nuanced insights into how class shapes the entrepreneurial pursuits of Black founders. Contributions to the sociology of race and ethnicity, intersectionality, and the sociology of entrepreneurship are also discussed.