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.
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.
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?
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?”
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