Entrepreneurship is notoriously hard work. Globally, it’s estimated that 90% of startups fail. It’s perhaps not that surprising that research from the University of Amsterdam found that entrepreneurs can be vulnerable to so-called “positive workaholism”, as the passion for their enterprise combined with the sheer number of things that need to be done contribute to a typical working week that is far longer than the average salaried employee.
The researchers found, however, that whereas long hours can easily result in burnout among other workers, entrepreneurs are often immunized from it to an extent, both because of the passion they have for their project and the autonomy they enjoy in pursuing their dreams.
The right mindset
Research from Florida State University suggests that reframing stress can also be beneficial, as this allows entrepreneurs to view stress not as a negative thing but more a natural response to a challenging circumstance. The researchers highlight that this is a mindset that is commonly seen in sport, or even in the business world when thinking of one-off events, such as giving a big speech, but less commonly seen to help people tackle ongoing stress.
“We were really pleased to find something that was theoretically relevant and also practically relevant for small business owners during COVID,” the researchers explain. “And for anyone who’s stressed out, if they can reframe their mindset to think about stress as potentially helpful, then they’re more likely to respond to stress in ways that are actually very helpful.”
The researchers showed entrepreneurs videos on some of the benefits of stress, including providing a boost to our cognitive performance and even heightening our attention. Those entrepreneurs who received this “stress is good” training were more likely to engage in positive coping mechanisms, such as seeking help from others or directly targeting the issues that were causing the stress.
Building resilience
This is ultimately crucial, as it’s evident that resilience is a key quality for entrepreneurs. That was reinforced by a recent report from The Entrepreneurs Network, which found that mental resilience was a key determinant for entrepreneurial success.
“Ask any founder and they’ll say that the path of entrepreneurship can be tough at times,” the researchers explain. “The uncertainty, the need for constant adaptation, and the emotional connection make for an exhilarating ride but a cognitively and emotionally challenging one, distinguishing it from other types of leadership.”
The researchers quizzed around 400 entrepreneurs to gauge their mental health. The results show that nearly all showed signs of mental health strain, with the typical entrepreneur showing five distinct symptoms. So great is the strain on founders’ mental health, the researchers argue that they are five times as likely to exhibit mental health issues than the UK average.
Showing the strain
“Your mood is so linked to the performance of the company… a winning streak feels incredible, the lows can feel utterly hopeless,” said Lara Mott, founder of ImproveWell. “I always try to evaluate myself on effort put in, executing the processes that I control and trust, versus the outcome.”
Despite various initiatives to try and normalize mental health and encourage people to talk about it openly, the study found that over a third of founders felt unable to open up about the pressures they felt, especially so with investors.
The study found that personal resilience was key in helping founders buffer the challenges associated with building a startup. Lower-resilience founders were also markedly more likely to have considered quitting than higher-resilience founders.
The study concludes by noting that founders with high resilience scores proactively develop ways of thinking designed to bolster their resilience, are more likely to commit to habits like exercise, downtime, and sleep hygiene, and are more likely to make time to see other founders regularly and be in a peer support group or coaching group.
