Entrepreneurs also need to protect themselves from burnout

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Entrepreneurship has long been praised as the springboard for innovation, creativity and economic growth. The government actively promotes entrepreneurship as a means of promoting employment, with policies aimed at making it easier for people to start their own businesses.
Small and medium-sized enterprises (SMEs) and start-ups form the backbone of Europe’s economy, accounting for 99% of all businesses and providing two-thirds of private sector jobs.
But the allure of building something from scratch and being your own boss can hide some serious conflicts. It’s a strain on the mental health of those who dare to go it alone. For many entrepreneurs, the benefits of being their own boss come at a high cost: burnout.
Burnout is a condition typically associated with long-term stress and is becoming increasingly prevalent in the entrepreneurial world. While the victories of startups and visionary leaders are often celebrated, the mental toll that entrepreneurs take on is rarely discussed.
Our recent research looked at the scope of entrepreneurial burnout and possible solutions to address it. The need to address the mental health of entrepreneurs is highlighted by a recent report that found that 87% of small business owners have experienced poor mental health in recent years, with 34% of them reporting burnout. I am.
Burnout is more than just feeling tired and stressed. This is a psychological syndrome characterized by emotional exhaustion, depersonalization (feelings of isolation or cynicism), and decreased satisfaction with one’s accomplishments.
For entrepreneurs, there are very specific challenges. These workers are especially vulnerable to burnout because they have to contend with financial risks, constant workloads, and constant uncertainty in business operations. Unlike employees in traditional workplaces, entrepreneurs often work alone and take on responsibilities for everything from leadership to bookkeeping. This can increase the psychological burden.
A review of 47 studies reveals the main factors contributing to entrepreneurial burnout. One of the main factors is the sheer amount of work involved in running a business. Many entrepreneurs report working long hours, including weekends and holidays, with little time for rest or leisure.
Financial pressures to maintain cash flow and ensure profitability are often stressful because they are risks to entrepreneurs’ own funds and assets. From marketers to product developers, we’ve found that the roles entrepreneurs have to play are diverse, often resulting in conflicting demands and unclear priorities.
This ambiguity and conflict between roles can leave you feeling overwhelmed and frustrated. Compounding these issues is the loneliness many entrepreneurs experience due to the lack of camaraderie and support structures found in traditional workplaces.
Even passion, a hallmark of successful entrepreneurs, can be a double-edged sword. If left unchecked, entrepreneurs can overcommit, neglect self-care, and ultimately become exhausted.
The effects of burnout extend beyond the individual. We’ve found that entrepreneurs who struggle with this problem often say that their creativity and productivity have declined. However, both of these elements are essential for a successful business.
Chronic stress can lead to physical health problems such as sleep problems, headaches, and cardiovascular disease. At a business level, poor performance can lead to missed opportunities, decreased revenue, and even business failure.
Relationships can also suffer, as the pressures of entrepreneurship consume time and energy that could be spent on family and friends.
Future direction
The entrepreneurial journey is inherently tough, but burnout is not inevitable.
Entrepreneurs can take steps to protect their mental health by setting clear boundaries between work and personal life. It’s important to establish dedicated downtime and avoid an “always on” mindset.
Delegating tasks and outsourcing non-core activities can reduce your workload, while building a supportive network of colleagues and mentors creates a sense of community and shared understanding.
The same simple self-care habits recommended for employees, such as regular exercise, healthy eating, and mindfulness, can be powerful buffers against stress. In more severe cases, seeking professional help from a counselor or coach may be able to provide customized strategies to cope with the challenges.
Organizations that support entrepreneurs through training, mentorship and funding (known as incubators and accelerators) also have a role to play. Integrating mental health resources and promoting work-life balance can support a healthier entrepreneurship. Training programs that teach stress management and resilience techniques are particularly beneficial.
Importantly, by changing the narrative around entrepreneurship from one that celebrates hustle culture to one that celebrates sustainable growth, we can encourage healthier practices.
Policy makers also have the power to create change. Resources can be made more accessible by providing subsidies and tax incentives to companies that invest in mental health initiatives. Promoting research on entrepreneurial well-being can highlight best practices and beneficial responses, as can ensuring access to affordable mental health care for entrepreneurs and their teams.
After all, entrepreneurship is the foundation of economic innovation and growth, but it cannot thrive without prioritizing the well-being of the people at its center.
Addressing burnout is not only an ethical imperative, but also an economic imperative. Entrepreneurs promote progress and create opportunities for others, so they should be able to succeed without sacrificing their own well-being. Waiting until the tank is empty is bad news for everyone.
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Citation: Entrepreneurs need to protect themselves from burnout, too (January 12, 2025) Retrieved January 12, 2025 from https://phys.org/news/2025-01-entrepreneurs-burnout.html
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