Existing theory has suggested that extreme events can induce a poverty–constrained mindset, however in our field work we found micro–entrepreneurs used a paying–it–forward mechanism to expand their entrepreneurial functioning by simultaneously improving others. We tested these counter–factual insights by using panel data covering the trading histories of 2,255 entrepreneurs who lived and traded in Kenya’s informal settlements. The results confirmed that paying–it–forward expands entrepreneurial functioning through two contrasting network interaction effects that either amplify or attenuate the pro–social impact of paying–it–forward on others’ welfare during the COVID–19 pandemic lockdown.