This study examines how multi-level stigmatisation emerges through the interplay of government actors, religious leaders and organisations, and individuals belonging to the majority group within a socio-political and religious ecosystem. Focusing on India’s meat and leather industries—sectors closely tied to Muslim collective identity—we analyse how sacred and secular narratives converge to construct and propagate identity-based stigmatisation. Drawing on primary and secondary qualitative data, our findings reveal that stigmatisation erodes market access, legitimacy, and societal support, while reinforcing systemic exclusion. This study advances stigmatisation theory and entrepreneurship literature by uncovering the mechanisms through which ecosystems amplify stigmatisation, providing critical insights into the socio-political and identity-based dynamics that shape entrepreneurial landscapes.