Entrepreneurship has long been hailed as a springboard of innovation, creativity and economic growth. Governments actively promote entrepreneurship as a vehicle for boosting employment with policies designed to make it easier for people to start their own businesses.
Small and medium-sized enterprises (SMEs) and start-ups form the backbone of Europe’s economy, representing 99% of all businesses and providing two thirds of private sector employment.
But the allure of building something from scratch and being your own boss can hide a serious struggle: the mental health toll on those who dare to go it alone. For many entrepreneurs, the benefits of being their own boss comes at a large cost – burnout.
Burnout, a condition typically associated with prolonged stress, has become increasingly prevalent in the entrepreneurial world. While the triumphs of start-ups and visionary leaders are often celebrated, the psychological toll on entrepreneurs is rarely discussed.
In our recent study, we looked at the scope of burnout among entrepreneurs and solutions that could address it. The need to address entrepreneurs’ mental health is underscored by a recent report, which found that 87% of SME managers have experienced poor mental health in recent years, with 34% reporting burnout.
Burnout is more than just feeling tired or stressed. It is a psychological syndrome characterised by emotional exhaustion, depersonalisation (a sense of detachment or cynicism), and feeling less satisfied by your accomplishments.
For entrepreneurs, there are very specific challenges. The demands of facing up to financial risk, relentless workloads and the constant uncertainty of running a business make these workers particularly susceptible to burnout. Unlike employees in traditional workplaces, entrepreneurs often work alone and shoulder every responsibility, from leadership to bookkeeping. This can amplify the psychological burden.
Our review of 47 studies shed light on the key factors driving entrepreneurial burnout. One major contributor is the sheer volume of work involved in running a business. Many entrepreneurs report working long hours, including weekends and holidays, with little time for rest or leisure.
The financial pressures of maintaining cash flow and ensuring profitability add to the stress, as these risks often involve the entrepreneur’s own money and assets. We found that the diverse roles entrepreneurs must play, from marketeer to product developer, often create conflicting demands and unclear priorities.
This ambiguity and conflict between roles can exacerbate feelings of overwhelm and frustration. Compounding these issues is the isolation many entrepreneurs experience, as they lack the camaraderie and support systems found in traditional workplaces.
Even passion – a defining trait of successful entrepreneurs – can become a double-edged sword. When unchecked, it can lead to entrepreneurs overcommitting, neglecting their self-care and, ultimately, exhaustion.
The impact of burnout extends beyond the individual. We found that entrepreneurs who are struggling with the problem often said their creativity and productivity declined. But both of these elements are critical to driving a successful business.
Chronic stress can lead to physical health problems, including sleep disturbances, headaches and cardiovascular issues. On a business level, reduced performance may result in missed opportunities, lower revenues or even failed ventures.
Personal relationships can also suffer as the pressures of entrepreneurship consume time and energy that might otherwise be devoted to family and friends.
Although the entrepreneurial journey is inherently demanding, burnout is not inevitable.
Entrepreneurs can take steps to protect their mental health by setting clear boundaries between work and personal life. Establishing dedicated time for rest and avoiding the “always on” mindset is essential.
Delegating tasks and outsourcing non-core activities can reduce workloads, while building a supportive network of peers and mentors offers a sense of community and shared understanding.
The same simple self-care practices that are recommended for employees – such as regular exercise, healthy eating and mindfulness – can provide powerful buffers against stress. In more severe cases, seeking professional help from a counsellor or coach can offer tailored strategies for managing challenges.
The organisations that support entrepreneurs with training, mentoring and funding (known as incubators and accelerators) also have a role to play. By integrating mental health resources and promoting work-life balance, they can support a healthier entrepreneurial landscape. Training programmes that teach stress management and techniques for building resilience are particularly beneficial.
Importantly, shifting the narrative around entrepreneurship from glorifying hustle culture to celebrating sustainable growth can encourage healthier practices.
Policymakers, too, hold the power to create change. Offering grants or tax incentives for businesses that invest in mental health initiatives can make resources more accessible. Promoting research into entrepreneurial wellbeing can highlight best practice and helpful responses, as can ensuring affordable mental health care is available for entrepreneurs and their teams.
Ultimately, entrepreneurship is a cornerstone of economic innovation and growth, but it cannot thrive without prioritising the wellbeing of those at its heart.
Addressing burnout is not only an ethical imperative but also an economic one. Entrepreneurs fuel progress and create opportunities for others, so they should be able to succeed without sacrificing their wellbeing. Waiting until their tank is empty is bad news for everyone.
The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.
