It’s no secret that entrepreneurs invest heart and soul into starting, running, developing and growing a business. But building a company can come at a cost to personal well-being and therefore to venture success. Our new research reinforces the concept that well-being is more than just personally fulfilling—it actually drives entrepreneurial growth.
The potential adverse consequences to entrepreneurs when well-being is disregarded are well-documented. One survey revealed that 87% of founders reported experiencing either anxiety, depression or burnout—or all three. Another found that 30% of entrepreneurs acknowledged depression and 27% anxiety, rates well above the 7% prevalence in the overall U.S. population. Additional research shows that entrepreneurs with compromised well-being were less productive, innovative and persistent, leading to lower economic output. Entrepreneurial well-being is a multifaceted concept defined as the experiencing of satisfaction, positive affect, and psychological functioning.
So what’s contributing to these high levels of compromised well-being? Granted, entrepreneurs work hard, sometimes too hard. Many entrepreneurs work 50 to 60 hours per week, often more during the startup phase, compared to the standard 40-hour week for most employees at corporate jobs. Entrepreneurs may also work without clearly defined work-life boundaries and days off—pulling all-nighters, skipping meals and sleep, or forgoing exercise in exchange for logging long hours. The top performers in entrepreneurship average only about six hours of sleep per night.
But work hours alone don’t fully explain the problem. Entrepreneurs are, on the whole, inherently different from corporate employees. Being your own boss, after all, demands the managing of finances, operations, marketing, and human resources. By its very nature—especially its unpredictability, often in the face of limited resources—it risks breeding entrepreneurs who drive themselves too hard.
At the same time, the very nature of entrepreneurship grants a level of freedom that corporate jobs often don’t. Research shows that entrepreneurs have more opportunity to direct their own work, operate with a high degree of autonomy, and draw deep meaning from what they do. But this flexibility can be a double-edged sword. Without clear boundaries, work can easily spill over into personal life. The fast pace, pressure to succeed, and ever-present risk of failure can make it difficult to step back, leading many founders to equate business success with personal success, and neglect to take time to catch a breath.
No wonder entrepreneurs are so vulnerable to suffering an emotional toll and strained relationships with family, friends and colleagues. The very factors that fuel their ambition can also create a sense of isolation. In some cases, the more successful entrepreneurs get, the lonelier they feel. Dissatisfaction and frustration may lead to burnout, hampering overall performance, notably decision-making.
What we found
In our current research, we conducted surveys, interviews and focus groups with 308 entrepreneurs from different fields and geographical locations globally. Led by Lehigh University in partnership with the Nasdaq Entrepreneurial Center in Silicon Valley and TU Dortmund University in Germany, our preliminary sample found that higher well-being actually benefits founders not only personally but also professionally. Entrepreneurs who report higher well-being are more engaged in their businesses, thereby fueling their incentive to grow their ventures.
Further, our study shows that entrepreneurs who set work-life boundaries for themselves experience less burnout. Almost half of those who abided by boundaries (45%) reported low burnout, compared to 6% of those who struggled to do so. Non-boundary-setters were almost three times more likely to experience high burnout (67%) than boundary-setters (23%). Also vital was strong community support: entrepreneurs with access to mentors and emotional backing were 50% more likely to report higher resilience and better stress management.
These findings highlight the value of striking a balance between gung-ho overkill and long-term practicality—in the process, lending a strategic advantage to the quest for entrepreneurial success.
We also identified some key stressors that undermine entrepreneurial well-being. Founders cited financial stress and income instability as major concerns, with 68% uncertain about meeting payroll or personal expenses, leading to exhaustion. Also at issue was work-life balance, with 74% indicating that the demands of business left them little room for self-care. Does any of this have to be so? Should we still see the stereotypical succeed-at-all-costs entrepreneur as a role model? Should we keep glorifying a hustle culture that might threaten health and wellbeing, and that could prevent ventures from surviving and flourishing?
No, no, no and no. It’s imperative to aggressively challenge the longstanding assumption that entrepreneurs should be willing to sacrifice well-being to achieve financial success. So what to do?
Redefining entrepreneurial success
To start, elevate entrepreneurial well-being to a much higher priority on our global agenda. We should no longer undervalue and overlook the well-being dilemma. Raise awareness of the special obstacles that entrepreneurs confront. Redefine entrepreneurial success as a balance between financial ambition and preference for autonomy with the pursuit of well-being, ideally without jeopardizing either. Implement tactics to build a more sustainable, more compassionate entrepreneurial culture.
To a certain extent this is already happening. Our research showed, for example, that venture capital firms are starting to recognize the value of investing hard-coded dollars in companies that prize wellbeing enough to retain wellness coaching services, hold wellness retreats and take other measures to promote overall health. Indeed, VC firms such as Balderton, Felicis and Starting Line now operate founder health and performance programs along with coaching and therapy sessions for founders. Early-stage venture fund 11 Tribes proactively invests in the well-being of entrepreneurs.
On a small scale, entrepreneurs can enact measures to help themselves. They should take the time necessary to recharge and refocus to relieve the pressure they might feel. Founders should adopt well-being as a daily practice. Those who pause for breaks, meditate, do yoga, get enough sleep, build a support network and ask for help perform at a higher level.
But on a macro level, organizations and entrepreneurial communities should commit to systemic reform. Although early-stage ventures often lack the resources for full-scale HR teams, founders can take low-cost, high-impact steps, such as fostering psychological safety, implementing workload management, and tracking well-being metrics. Startups that integrate well-being into leadership practices and company policies can lower stress, boost engagement, and ensure that well-being is not an afterthought, but, rather, top of mind.
Just imagine working in an entrepreneurial environment where well-being is valued—where, for example, peers, mentors and investors routinely take a moment to ask a question all too rarely asked: “How are you today?”
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
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