We explore the power effects of place stigma on entrepreneurial identity construction through a narrative analysis of the lived experience of entrepreneurs from South African townships, underdeveloped segregated urban areas on the periphery of towns. As a result of our analysis, our study offers a processual view on managing the influence of place stigma on inhabitants of places that carry it with two mechanisms that helped participants to navigate this process. We contribute to the narrative studies of entrepreneurial identity construction, where the discourses of individuality, heroics, and masculinity are historically prevalent. Building on the recent studies that suggest that entrepreneurs may draw on other discursive resources and myths, including ethnicity and family, in their entrepreneurial identity construction, our study brings to life the role of place as a more material setting influenced by discourses that attribute stigma characteristics.