Understanding and Addressing the Mental Health Crisis Among Entrepreneurs

Many people dream about entrepreneurship — the freedom of being your own boss can sound enticing. But real entrepreneurs know, while it comes with many benefits, it also comes with intense pressure. Research shows entrepreneurs face significantly higher stress than other workers^[1]. Some even say entrepreneurs are facing a mental health crisis.

Here, we’ll talk about the mental health problems affecting entrepreneurs today, and how you can manage your mental health as an entrepreneur.

What are the unique stressors facing entrepreneurs?

Although every career comes with the risk of stress and burnout, many studies show entrepreneurs face a higher level of stress than many other professions. Although starting your own business is rewarding for many, it can also be extremely challenging, especially in the beginning. Entrepreneurs face unique challenges that can sometimes lead to deeper mental health problems and exhaustion.

Here are some of the unique stressors entrepreneurs tend to face:

Entrepreneurship’s inherent risks

As the saying goes, “No risk, no reward.” Starting your own business as an entrepreneur is inherently risky. There’s no guarantee your business will succeed, and you may be plagued with doubts about the future. This also implies financial risk, as many entrepreneurs invest their own funds into their projects, or even go into debt, with no promise of return.

Generally, entrepreneurs need to be able to tolerate more risk than the average worker. But that doesn’t mean the risky nature of their profession doesn’t cause them stress. Many entrepreneurs become overwhelmed with stress and anxiety about potential failure. These constant worries can start to have serious mental health effects if left unaddressed.

Constant availability

Many people believe starting your own business comes with the flexibility of choosing your own schedule. And while this is true for many successful entrepreneurs, most people who run their own businesses feel the pressure to be constantly connected. It may become difficult for them to draw clear lines between business and the rest of their lives.

Entrepreneurship, for many, is a 24/7 business. Unlike employees, who can focus on the rest of their lives after they clock out, entrepreneurs often need to dedicate their entire lives to their business, especially when they’re starting out. The lack of work-life balance can become overwhelming for some.

The weight of expectations

Entrepreneurs may also become overwhelmed under the weight of expectations, both from themselves and from others. Some entrepreneurs quit their day jobs and start their businesses against their loved ones’ wishes. Some also receive funding from investors, which can increase the pressure they feel.

Because of this, they may have many doubts, and feel incredible pressure to prove people wrong. Sometimes, this means entrepreneurs don’t feel able to share their hardships with other people. They may feel they need to take on everything themselves in order to portray to the world their entrepreneurship has been successful. This can cause a strain on mental health and increased stress and burnout.

Financial and career uncertainties

Financial uncertainties can also have a negative effect on mental health for anyone facing job insecurity, including entrepreneurs. Unlike a full-time job, entrepreneurship doesn’t come with any security for the future. Entrepreneurs know they may run out of funding for not only their businesses, but their livelihoods, at any point. They’re also not eligible for government benefits such as unemployment or health insurance.

Entrepreneurship can also sometimes be feast or famine, even for successful people. The lack of clear roadmaps in entrepreneurship, as well as the stress of navigating an unpredictable market, can cause anxiety and other mental health problems for many entrepreneurs.

Lack of health benefits:

Entrepreneurs don’t get employer-funded health benefits. Although they’re required to have some sort of health insurance, they may not be able to afford a plan that realistically covers the cost of mental health services. For example, many affordable self-employment healthcare plans have prohibitively high deductibles. Entrepreneurs also lack access to other employer-provided mental health resources, like Employee Assistance Programs (EAPs).

Because of this, entrepreneurs may not get the same level of access to mental health services as employees. They may be under higher stress than employees, and not have anywhere to turn for support.

Common mental health issues faced by entrepreneurs

The mental health issues commonly faced by entrepreneurs largely have to do with the unpredictability of the entrepreneurship journey, as well as the financial instability that can be involved.

Anxiety and stress

Many entrepreneurs struggle with high stress levels, which can often develop into anxiety. Entrepreneurs face the constant pressure of building a successful business. They may even have other workers relying on them for their livelihoods, which can create an overwhelmingly stressful and high-pressure situation.

Constant stress can develop into generalized anxiety disorder for some entrepreneurs. This can manifest as symptoms like excessive worrying and difficulty sleeping, as well as physical symptoms like stomach problems, headaches, and fatigue.

Entrepreneurs also commonly face burnout, which is not a formal mental health diagnosis but is a serious concern nonetheless. Burnout can cause entrepreneurs to lose motivation and passion for their work. They may dread going into work every day. These feelings can create a self-fulfilling prophecy, meaning because they’re burnt out, they’re less likely to succeed.

Depression

Stress is also linked to a higher risk for depression. Depression is a mood disorder that causes feelings of worthlessness, hopelessness, and even thoughts of suicide. Because of the pressure entrepreneurs face, they may be more vulnerable to these types of feelings. They may become plagued with negative thinking patterns, like feeling they’re a failure, due to the nature of their business. This can cause low self-esteem for entrepreneurs, who may lose all hope for the future.

Entrepreneurship and its constant demands can also cause people to neglect their self-care needs. For example, an entrepreneur might be working so many hours they neglect to eat nourishing meals, exercise, or spend time with loved ones. Neglecting these important needs can also heighten the risk of depression and other mental health disorders.

Imposter syndrome

Imposter syndrome isn’t a diagnosable mental health condition, but it’s still an important issue affecting entrepreneurst. Imposter syndrome can cause entrepreneurs to feel they’re not good enough, despite their accomplishments and achievements. People with imposter syndrome often discount the positive things they’ve done and focus only on what they’re lacking.

Entrepreneurs may be at heightened risk of imposter syndrome because they often don’t have mentors or supervisors providing them with feedback. They may face a constant fear of being exposed as a fraud and have deep insecurities they aren’t qualified to lead a business.

Insomnia

Distress and anxiety that can come along with entrepreneurship can lead to insomnia, or difficulty falling or staying asleep. If you’re an entrepreneur, you may find yourself tossing and turning all night long. You may have worries about your business coming up at night and preventing you from getting a good night’s rest.

Unfortunately, sleep deprivation and mental health issues like depression and anxiety can become locked in a vicious cycle. The more anxious you feel, the less you’re able to sleep, but the less you sleep, the more anxious you feel. The cycle can get worse and worse until you receive professional support.

Strategies for managing your mental health as an entrepreneur

Although being an entrepreneur can increase your risk for developing these mental health problems, that doesn’t mean you are powerless against them. There are many things you can do to bolster your mental health, even when you’re living with the almost constant pressure of entrepreneurship.

Try these strategies:

Prioritize self-care

We talk so much about the importance of self-care in the media that the words have become almost meaningless. But it can’t be stated strongly enough: practicing solid self-care habits is one of the best things you can do to bolster your overall mental health. Self-care isn’t about pampering yourself or indulging in luxuries. It’s simply about meeting your basic physical and emotional needs, whatever that means for you.

For example, getting regular physical exercise is a habit proven by research to be impactful for positive mental health. Find sustainable ways to move your body regularly, like taking a dance class or gardening in the afternoon. Getting restful sleep is another self-care habit essential for maintaining good mental health during your entrepreneurship journey.

Build a support system

Everyone needs a good support system in their lives. This can be even more important for entrepreneurs, who often work alone without the benefit of colleagues. Build a support system you can rely on during times of stress. This can consist of friends and family members, but it can also be helpful to connect to fellow entrepreneurs who know what you’re going through.

When you have a community of entrepreneurs around you, it can help you feel less alone in the things you face daily. It can also help connect you to entrepreneurship mentors who can guide you in business and in life, including giving you tips on how to manage your mental health as an entrepreneur.

Set boundaries

As an entrepreneur, you may feel you need to do everything. Unlike more traditional job roles, you wear many hats. The line between life and work can start to blur, and you may feel you need to invest every minute of free time into your business.

However, your business is likely to fail if you, yourself, are burnt out and stressed. As they say, you can’t pour from an empty cup. Make sure you have the energy and passion to put into your projects. Set boundaries for yourself, even if they’re minor. For example, don’t answer emails after a certain hour in the day, or take an annual vacation in which you disconnect from your projects. Different boundaries will work for different people. The important thing is to have boundaries that protect you from becoming burnt out.

Build resilience

Resilience is defined as your ability to bounce back from hardships and struggles. Being resilient is one of the most important factors when you’re an entrepreneur. Entrepreneurs are more likely to face setbacks and hardships in their line of work, which can have a way of bleeding into the rest of your life. You need to be resilient to be able to handle the ups and downs of the entrepreneurship roller coaster. If you’re not resilient, then the pressure of this line of work can bring you down.

Practicing good self-care routines is one way you can bolster your resilience. You can also learn effective stress management techniques to keep your stress levels low, which can prevent you from going over your limit and becoming overwhelmed.

Seek professional support

Lastly, if you’re struggling with the pressures and stressors of entrepreneurship, you may benefit from professional mental health support.

You don’t need to wait for a mental health crisis to happen to start working with a therapist. A mental health professional can help you learn new strategies to manage the stress that comes along with entrepreneurship. A therapist can also help you explore painful feelings like hopelessness, imposter syndrome, and low self-esteem.

Exclusive mental health treatment for high achievers

At The Center • A Place of HOPE, we use a Whole Person Care approach to mental health treatment. We understand the way you feel about yourself in every area of your life, including work, affects your mental health. If entrepreneurship is affecting your mood and anxiety levels, that’s important to address.

We offer a specialized, highly confidential, and exclusive treatment program for entrepreneurs, high achievers, and executives who may need more privacy and security. We can help you battle imposter syndrome and burnout and be your best self so you can help your business succeed.

Get in touch with us to learn more about our different programs and treatment approaches.

1 – https://www.frontiersin.org/journals/psychology/articles/10.3389/fpsyg.2022.970797/full