It’s well known that entrepreneurs pour their heart and soul into launching, managing, expanding, and nurturing a business. However, building a company can have an impact on personal well-being, which in turn affects the success of the venture. Our latest research supports the idea that well-being is not only personally rewarding but also fuels entrepreneurial growth.
The negative impacts on business owners when health is overlooked are extensively recorded.One survey revealed that 87% of foundersreported feeling either anxiety, depression, or burnout—or all of them.Another foundThat 30% of business owners admitted to experiencing depression and 27% reported anxiety, figures significantly higher than the 7% rate found in the general U.S. population. Additionalresearch shows thatEntrepreneurs who have poor well-being tend to be less productive, creative, and determined, resulting in reduced economic output. Entrepreneurial well-being is a complex idea that refers to the experience of happiness, positive emotions, and mental health.
What is causing these elevated levels of impaired well-being? Admittedly, entrepreneurs put in a lot of effort, often to an excessive degree. Many entrepreneurs work50 to 60 hours each week, often more during the initial phase, compared to the typical 40-hour workweek for most employees in corporate roles. Entrepreneurs might also lack set work-life limits and days off—pulling all-nighters, missing meals and rest, or skipping workouts to put in extended hours. The highest achieving entrepreneurs typically average only aboutsix hours of rest each night.
However, working hours alone do not entirely address the issue. Entrepreneurs, generally, possess distinct characteristics compared to corporate workers. Being self-employed, for instance, requires handling financial matters, operations, marketing, and human resources. Due to its inherent nature—particularly its unpredictability, often under conditions of limited resources—it can lead to entrepreneurs pushing themselves excessively.
At the same time, the inherent characteristics of starting a business provide a degree of independence that many corporate positions typically lack.Research showsEntrepreneurs often have greater chances to control their own work, function with significant independence, and find profound purpose in their activities. However, this flexibility can also have negative consequences. Without defined limits, professional responsibilities may encroach on personal time. The rapid pace, the need to achieve success, and the constant threat of failure can make it challenging to take a break, causing many startup founders to link their business achievements with their personal accomplishments, and forget to pause and rest.
It’s no surprise that entrepreneurs often experience emotional strain and have difficulty maintaining relationships with loved ones, friends, and coworkers. The same qualities that drive their ambition can also lead to feelings of loneliness. In certain situations, the higher an entrepreneur’s success, the more isolated they may feel.Dissatisfaction and frustrationcould result in exhaustion, negatively affecting general performance,notably decision-making.
What we found
In our ongoing study, we carried out surveys, interviews, and group discussions with 308 business owners across various industries and global regions. Spearheaded by Lehigh University in collaboration with theNasdaq Entrepreneurial CenterIn Silicon Valley and at TU Dortmund University in Germany, our initial sample revealed that increased well-being positively impacts founders both personally and professionally. Entrepreneurs who experience higher levels of well-being tend to be more involved in their businesses, which enhances their motivation to expand their ventures.
Additionally, our research indicates that entrepreneurs who establish work-life limits tend to face less burnout. Nearly half of those who followed these limits (45%) indicated low levels of burnout, whereas only 6% of those who had difficulty maintaining them reported the same. Those who did not set boundaries were nearly three times more prone to high burnout (67%) compared to those who did (23%). Moreover, having solid community support was crucial: entrepreneurs who had access to mentors and emotional support were 50% more likely to report greater resilience and improved stress handling.
These results emphasize the importance of finding a middle ground between excessive effort and sustainable practicality—thereby providing a competitive edge in the pursuit of business achievement.
We also discovered several significant stressors that negatively impact the well-being of entrepreneurs. Founders mentioned financial pressure and unstable income as major issues, with 68% unsure if they can cover payroll or personal costs, resulting in burnout. Another concern was maintaining a work-life balance, as 74% reported that business demands left them little time for self-care. Is any of this unavoidable? Should we still view the traditional “succeed-at-all-costs” entrepreneur as an example to follow? Should we continue celebrating a hustle culture that may harm health and well-being, and could hinder the success and growth of businesses?
No, no, no, and no. It is crucial to strongly oppose the long-standing belief that entrepreneurs must give up their well-being in pursuit of financial achievement. So, what can be done?
Redefining entrepreneurial success
First, make entrepreneurial well-being a much more important focus on our global agenda. We must stop undervaluing and ignoring the well-being issue. Increase understanding of the unique challenges that entrepreneurs face. Change the definition of entrepreneurial success to include a balance between financial goals and the desire for independence, while also pursuing well-being, ideally without compromising either. Develop strategies to create a more sustainable and empathetic entrepreneurial environment.
To some degree, this is already taking place. Our research indicated, for instance, that venture capital companies are beginning to see the benefit of allocating significant funds to businesses that prioritize employee well-being by offering wellness coaching, organizing wellness getaways, and implementing other initiatives aimed at enhancing general health. In fact, VC firms like Balderton, Felicis, and Starting Line now have founder health and performance programs that include coaching and therapy sessions for founders. The early-stage venture fund 11 Tribes actively invests in the well-being of entrepreneurs.
On a minor level, business owners can implement actions to assist themselves. They need to allocate sufficient time to refresh and regain focus, thereby reducing the stress they may experience. Entrepreneurs should integrate wellness into their everyday routine. Individuals who take regular breaks, practice meditation, engage in yoga, ensure adequate rest, establish a support system, and seek assistance tend to achieve better performance.
However, at a broader level, organizations and entrepreneurial groups should focus on making systemic changes. Even though new businesses typically don’t have the budget for extensive HR departments, entrepreneurs can adopt affordable, effective measures, like promoting psychological safety, managing workloads, and monitoring well-being indicators. Startups that incorporate well-being into their leadership approaches and company guidelines can reduce stress, increase involvement, and make sure that well-being is a priority, not an afterthought.
Picture yourself in a startup setting where health and happiness are prioritized—where, for instance, colleagues, advisors, and funders frequently pause to inquire about something seldom asked: “How are you doing today?”
The perspectives shared in Muara Digital Team’s commentary articles are exclusively those of the writers and may not align with the views and convictions ofMuara Digital Team.
This narrative was first published onMuara Digital Team
