Cooperating with potential competitors is generally understood as counterproductive, and yet with the increased spread of business incubation and group-based lending to micro-entrepreneurs, such cooperative dynamics within the context of potential competition are increasing. We explore whether faultlines within groups negatively affect group and members outcomes and whether members’ willingness to cooperatively share information reverses the relationships between group differences and those outcomes. This study has the potential to contribute to and extend existing research on entrepreneurial competition and cooperation as well as broader research on group diversity