Abstract

I examine how informal economy entrepreneurs come to see laws as illegitimate and explore the role identity plays in motivating informal economy entrepreneurship. Analysis of interviews with 27 cannabis dispensary founders showed that entrepreneur experience with cannabis and traditional medicines revealed flaws with arguments against use of cannabis as medicine, causing entrepreneurs to view medical cannabis prohibition as founded upon ignorance and misinformation, and therefore illegitimate. Perception of prohibition’s illegitimacy moved entrepreneurs to act on a variety of identity processes, including desire for authentic work, desire to overcome stigma, desire to fulfill valued roles, and desire to create a world in alignment with key values. Factors relevant to social movements such as moral shock and injustice frames were also important.

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