Racial Activism as a Buffer Against Race-Based Stress in Racially Minoritized Entrepreneurs

Abstract This quantitative study aimed to examine the interplay between minority status stress, racial activism, and mental health with a sample of 400 under-represented racially minoritized and 193 non-under-represented racially minoritized business founders in the United States. Informed by a critical quantitative lens, the study investigates whether racial activism functions as a coping mechanism that moderates the link between minority status stress (the chronic stress of discrimination) and entrepreneurs’ mental health. The following methods were employed: (a) independent samples t-tests to examine the mean difference in minority status stress, racial activism, and mental health between under-represented racially minoritized and non-under-represented racially minoritized groups; (b) regression analysis to identify the predictors of mental health; and (c) regression-based moderation analysis to explore whether and how racial activism moderates the effect of minority status stress on entrepreneurs’ mental health. Minority status stress was found to be strongly correlated with the mental health of under-represented racially minoritized business founders, but no association was found for their non-under-represented racially minoritized counterparts. Notably, the influence of minority status stress on mental health was moderated by racial activism. Ultimately, this research argues that the path to closing racial gaps in entrepreneurship requires closing the gap in psychological well-being. By recognizing the profound impact of minority status stress and validating strategies like racial activism that combat it, an entrepreneurial ecosystem can be built that truly fortifies under-represented racially minoritized founders.