If you ask a founder how their business is going, the answer is almost always some version of “Great!”
Entrepreneurs face a huge amount of pressure to never show weakness while cheerleading in all internal and external situations. Despite the pressure, entrepreneurs are expected to be strong, confident, and optimistic.
Entrepreneurs experience stress and mental health concerns at higher rates than the general Canadian population. Nearly half (46%) of entrepreneurs say that their mental health interfered with their ability to work, and 62% report feeling depressed once a week (CMHA, 2019). Furthermore,
of entrepreneurs mental health interfered with ability to do work.
of senior leadership report exhaustion typical with burnout risk.
of founders have difficulty maintaining a work-life balance.
The rates of poor mental health for social entrepreneurs specifically are even higher; one study found that 84% of social entrepreneurs suffer from depression and 80% suffer with anxiety (Hussain and Li, 2023).
Entrepreneurs who identify as a persons of colour, Indigenous, newcomer Canadians, or as women experience greater mental health challenges and have greater needs in terms of support (BDC, 2022). Entrepreneurs from underrepresented groups report higher stress levels and feelings of isolation. Factors like a lack of representation, bias from investors, and the need to achieve higher standards than their peers contribute to this crisis.
. . .
Despite higher rates of mental health concerns, entrepreneurs are less likely to seek or receive support to improve their mental health. Only 16% of entrepreneurs would be willing to seek out professional help (CMHA, 2019). Entrepreneurs are held back by stigma, financial barriers, and fear of reputational harm.
While access to mentorship/coaching is an industry standard, entrepreneurs express hesitation to confide in someone invested in them, either in-kind or monetarily, that they are struggling. Further, the culture of entrepreneurship often normalizes burnout, commonly leaving entrepreneurs to cope with their mental health crisis in isolation.
The consequences of neglecting an entrepreneurs’ mental health can include:
Decreased productivity and performance
Reduced creativity and problem-solving
Conflict with team members
Decision-making fatigue
Withdrawal from networking and program participation
Heightened sensitivity to feedback
Burnout
Loss of vision and purpose
and more.
Investing in mental health makes good business and financial sense.
Median CA$1.62 Return of Investment,
which grows to a median yearly ROI of CA$2.18 after three years.
Deloitte. (2019). The ROI in workplace mental health programs: Good for people, Good for business.
By normalizing access to mental health services and better-equipping coaches and staff with the knowledge and tools to refer, we can foster sustainable leadership, improve business outcomes for ventures, and create a healthier innovation ecosystem.