IT’S ALWAYS DARKEST BEFORE DAWN: THE ROLE OF PRE-VENTURE ADVERSITY ON FOUNDER IDENTITY CONSTRUCTION AND MOTIVATION

Our study delves into the adversity that informal entrepreneurs face in impoverished regions. Focusing on South African townships, it adopts an identity theoretical lens to examine how pre-venture hardships shape founder identities and motives. We introduce the concept of “identity disconfirmation,” the negation of valued identities, and link it to entrepreneurial motivation. Challenging necessity-driven narratives, our work reveals the multifaceted role of adversity in shaping identity and diverse motivations. Using life-course methodology over three years, we contribute to entrepreneurship research by establishing a connection between context, identity, and motivation, highlighting how informal entrepreneurs transcend past challenges through venturing efforts.