Is it true that once you’re an entrepreneur, you’re always an entrepreneur? Not exactly, according to a recent study from the University of Central Florida and Purdue University. The research suggests that former entrepreneurs can shift from running their own businesses to becoming successful employees within a company, especially in positions that let them use their entrepreneurial energy.

“With today’s career paths typically spanning multiple roles across a variety of organizations, understanding the transition between someone’s old work self and new work self may be critical to not only the employee’s success but also the company’s,” the researchers explain.

Identity conflict

The researchers delved into the levels of identity conflict experienced by former entrepreneurs who transitioned to working for an organization.

Previous studies have indicated that ex-entrepreneurs often face a “founder penalty” when seeking employment, losing opportunities to candidates who have never been self-employed. Employers may assume that former entrepreneurs could be challenging to manage or might leave to start their own businesses again. However, this new research suggests that this isn’t universally true for all jobs or ex-entrepreneurs.

In their survey, they asked ex-entrepreneurs about their current work identity, exploring whether they could express their entrepreneurial side in their current roles or if they felt the need to suppress it. Additionally, they gathered feedback from the ex-entrepreneurs’ romantic partners, assessing whether the employees spoke positively about their current organization, engaged in boosterism, or experienced burnout.

The findings revealed that identity conflict between the previous entrepreneurial self and the current employee self was linked to higher burnout levels and diminished boosterism.

“Ex-entrepreneurs who felt a strong nostalgia for being their own boss tended to be the ones who were the most negatively affected, with the highest levels of burnout and lowest levels of boosterism,” the authors conclude. “To mitigate this, organizations could use interview questions to help identify those who may be more likely to suffer negative consequences or develop positions and onboarding practices that minimize this source of conflict and lay a stronger foundation for success.”