Stress and burnout have been regular bedfellows during the Covid pandemic, and one might imagine that this is a particular problem for entrepreneurs whose incomes were inevitably more fragile. Research from the University of Amsterdam explores whether there are any lessons from how entrepreneurs manage this stress that can help us do likewise.

Indeed, the study suggests that whereas we might imagine stress and burnout among entrepreneurs are higher than average, the reverse is actually the case, and this is largely due to the positive psychological effects of entrepreneurial work.

“There seems to be a paradox of ‘positive workaholism,’ because entrepreneurs are so engaged in their work that they also show less daily work recovery after regular working hours. What makes them so protected from burnout? We therefore also looked at the main mechanisms associated with burnout and engagement with work,” the researchers explain.

Psychological utility

The researchers explain that there appears to be something about the work of entrepreneurs that results in less work-related stress than is the case for those in paid work. They believe that this might be due in part to the high degree of autonomy that is available to entrepreneurs.

“All this leads to a positive psychological return on the substantial investment that entrepreneurs make due to their great involvement in the work,” they explain. “As a result, their work not only gives them more energy and a more positive state of mind than salaried employees on average; they are also happier and more satisfied with their work. On average, entrepreneurship seems to make people happier.”

This was especially so for solopreneuers who don’t have any other employees. Once entrepreneurs add employees to the payroll, then the chances of burnout appeared to increase, but it was still lower than for salaried workers elsewhere.

As a result, the researchers believe that adopting some of the practices of entrepreneurship in the workplace could help to lower stress and burnout among employees, especially in jobs that are at high risk of such consequences.

“If we can maximize the psychological utility of working as an entrepreneur, it promises not only personal benefit in the entrepreneurial sector, but also, more broadly, to the development of healthy, motivated, and well-rewarded entrepreneurs running their businesses, collectively generating broader social and economic benefits,” the researchers conclude.