This paper attempts to reconceptualise inclusive entrepreneurship as a negotiated, processual phenomenon rather than a static outcome. Using constructivist grounded-theory study of 42 semistructured interviews with queer founders and ecosystem actors across India (July 1, 2024- September 30, 2025), the analysis highlights how inclusion is produced, stabilised, or unexecuted through frequent negotiation moves among founders, families, customers, intermediaries, and financiers. Three tightly intertwined mechanisms structure these negotiations: (1) structural/institutional boundary conditions (e.g., asymmetric verification burdens, family finance norms, identity-segmented demand) that delimit feasible moves; (2) founders’ identity-work and disclosure strategies that manage visibility and credibility; and (3) convertibility mechanisms- the interactional practices (third-party vouching, blinded assessments, programmatic bridging) that transforms bonding capital into bridging capital. Ecosystem actors function as active mediators whose methods and procedures can stabilise convertibility or regenerate exclusion. Cross-case comparison yields a typology of negotiation states (Bridged alliances, strategic negotiators) and five process propositions linking structure, disclosure, convertibility, stakeholder transparency and intersectionality. This study contributes theoretically by reframing inclusion as a dynamic negotiation, introducing convertibility to social capital theory, and treating ecosystem practices as mechanisms. It also offers executable implications for intermediaries, investors, and policymakers aiming to stabilise inclusive outcomes.