Entrepreneurship is increasingly recognized as a viable pathway for individuals released from prison, particularly in the face of substantial employment barriers. A recent study by SCORE indicates that in the United States, individuals with a criminal record are 45% more likely to start their own businesses compared to those without such backgrounds. Despite the potential for entrepreneurship to offer a fresh start, the challenges these individuals face are significantly complicated given the simultaneous hurdles associated with societal reentry.
In our paper “Entrepreneurship after prison: It’s complicated” published in the Journal of Business Venturing Insights, we draw on interviews and empathy mapping to delve into these unique challenges, providing a detailed exploration of the entrepreneurial journey post-incarceration.
Unpacking the entrepreneurial journey
Our research employs an Empathy Map Canvas to structure insights from conversations with five entrepreneurs who launched businesses after incarceration. This method helped us capture the full spectrum of their experiences—what they see, say, do, and hear. One entrepreneur poignantly described the initial entrepreneurial motivations, “After you know nearly ten years in prison, you get out, you have no savings accounts, no credit score, no history of employment. You’re starting pretty much from scratch.” This captures the daunting reality of starting over without the basic tools most take for granted.
Moreover, their dialogue reveals a determination to navigate through these obstacles. For example, another entrepreneur stated, “You develop the language of being able to communicate with people in that world on those terms. Because that’s what a lot of times people lack—the language.” There is a learning curve and adaptation process, which is critical for their integration into the business community.
The entrepreneurs also talked about the profound need for creating their own opportunities due to systemic barriers. As one entrepreneur shared, “It was like I’m tired of putting my situation in other people’s hands and running into stuff where it’s just a call to HR and now I’m wondering how to pay my rent.” The decision to venture into entrepreneurship is driven in part by a sense of frustration.
“I’m an addict,” “I’m a thief,” “I’m this,” “I’m that,” “I’m always going to be that,” “I’m never going to change.” These are some of the stigmatizing labels that entrepreneurs reported hearing from others, illustrating the additional social challenges they must overcome. These narratives underscore the complexity of their entrepreneurial path, which is not only about business survival but also about personal transformation and social acceptance.
Key insights and moving forward
Drawing on the empathy gained through the interviews, we present a series of insights and focused questions aimed at collectively fostering a more inclusive entrepreneurial ecosystem.
How might we make it easier for individuals who start a business upon reentry to master the “figure it out” stage in both their personal and entrepreneurial lives simultaneously?
How might we improve access to financial capital for individuals who start a business upon reentry?
How might we help individuals who start a business upon reentry more efficiently navigate the current landscape of doing business?
How might we cultivate hope in the reentry process for individuals who start a business upon reentry with business professionals outside the justice system?
How might we better connect individuals who start a business upon reentry with business professionals outside the justice system?
How might we better connect individuals who start a business upon reentry to peers whom they can learn from and look up to?
How might we reduce stigma toward individuals who start a business upon reentry?
Starting points in the existing literature for entrepreneurship scholars are also provided, with the hope of catalyzing more insight into entrepreneurship following incarceration.
Read the full paper here to find out more.
Author bio
Fiona Robinson is an Assistant Professor of Innovation and Entrepreneurship at Mount Royal University (Canada). Her research explores innovative avenues to enhance entrepreneurial learning for individuals traversing unconventional paths to entrepreneurship, including social entrepreneurs, creative entrepreneurs, and reentry entrepreneurs.
Stephanie A. Fernhaber is a Professor of Entrepreneurship and Innovation at Butler University (USA). Her research interests include international entrepreneurship, grassroots innovation, and societal grand challenges. At the community level, Stephanie has a passion for spurring innovation with an emphasis on social entrepreneurship.
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