The past year has challenged startup founders, resulting in adverse effects on their mental health. Rising pressures, declining company values, demanding investors, job cuts and a sharper focus on profitability have been compounded by the global pandemic. Many have been plagued with feelings of isolation and uncertainty, and worrying financial consequences.
These pressures have led to a striking uptick in startup founder suicides. As a direct result of continuous stress experienced, we see a critical parallel between mental health and the entrepreneurial journey. Indeed, the pressure and isolation associated with entrepreneurship can amplify mental health issues. A striking 58% of founders report instances of depression. Even more alarming, 51% report lacking a support system.
However, there is growing concern about mental health within the ecosystem. Startup founders are seeking professional help and joining support groups of peers who relate to their situations. This increased focus on well-being paves the way to healthier and more sustainable work environments. A variety of mental health resources for entrepreneurs, including specialized therapists, founders retreats and online platforms offering psychological support, have become available and continue to grow in response to this urgent need.
Startup founders are reconsidering their commitment to the entrepreneurial lifestyle, venturing into traditional career paths for financial stability. The intense pressures of leading a startup impact lifestyle changes too: 50% have seen a decrease in exercise while 42% confess unhealthy eating habits. Data also reveals increases in insomnia and feelings of burnout, whilst 64% report spending less quality time with family and loved ones.
Further, 45% of founders rate their mental health as poor or very poor; 85% have endured high stress levels in the past year. Over two-thirds express concern over their financial stability leading to high levels of anxiety. With this in mind, more founders believe it is essential to achieve a work-life balance. However, only 30% believe they achieve it. Worryingly, only 26% of founders feel fully prepared to manage the stress of running a business.
Despite these challenges, startup founders remain dedicated to their ventures, with 97% agreeing they would start their business again even knowing the pressure ahead. The driving belief is that increased communication regarding mental health and more robust support structures within the startup community could lay the groundwork for sustainable growth and improved work-life balance.
