Being an entrepreneur is intense. The highs of owning your own business can be exhilarating, and overall, engaging in entrepreneurship enhances well-being.
Across all continents, entrepreneurs report greater satisfaction with both work and life in general than regular employees even where both metrics are below the global average. Yet at the same time, stories abound of entrepreneurs experiencing burn out and mental health problems and committing suicide if their businesses fail. How can the right policies help them?
A passionate affair
The explanation for this paradox lies in the strong emotional connections entrepreneurs develop with their businesses. Passion can be a fantastic resource, energising entrepreneurs to work tirelessly on their businesses, overcoming seemingly insurmountable challenges.
The autonomy, purpose and financial rewards that entrepreneurship can help fuel well-being. But passion can become obsessive and destructive; autonomy can lead to overwork and eventual burnout – nobody sets time limits; and uncertainty about eventual success can lead to stress and anxiety.
What entrepreneurs can do
To maintain well-being, entrepreneurs must navigate these highs and lows, cultivating practices that support their well-being while capitalising on the positive aspects of their roles. Here are some suggestions based on what works:
Develop structures and set boundaries
- It is easy to work non-stop, especially when the office fits inside the palm of your hand. But work-life balance is needed for long-term productivity and success.
Prioritise self-care
- Regular exercise, balanced nutrition, and adequate sleep not only boost physical and mental health but also enhance cognitive functioning. Entrepreneurs should treat self-care as a business investment, prioritising it as part of their routine.
Leverage social support
- Loneliness is common among entrepreneurs, but social networks can buffer stress. Entrepreneurs should build social support systems with trusted individuals and can also benefit from talking and sharing experiences with other entrepreneurs through peer mentorships and informal networks.
Redefine success
- There is pressure on entrepreneurs to achieve financial success and grow their businesses, especially from investors. But equating success solely with such achievements can lead to chronic stress and dissatisfaction.
The entrepreneurial journey will always come with challenges, but prioritising well-being can make the difference between thriving and burning out.
Entrepreneurs have the power to set boundaries, cultivate healthier habits, seek support, and redefine success in ways that align with their personal and professional aspirations.
What policy can do
Policy makers should place more emphasis on supporting entrepreneurs’ well-being, as entrepreneurs are essential to economic growth. SMEs account for over 99% of firms in OECD economies, over 60% of business sector employment, and the majority of value added and new job creation. Entrepreneurs who feel well, perform well; they work harder, are more persistent, more creative, more ambitious to grow their business, and their businesses perform better.
Entrepreneurs with the headspace and the mental capacity to innovate will drive our economies. Policy can help by:
- Destigmatising mental health through communication campaigns. Campaigns can be run in partnership with government agencies and business support organisations recognising that stress is part of the demanding nature of entrepreneurs’ work. Slogans such as “it’s ok not to be ok as an entrepreneur” or “self-care is not selfish but is essential to sustain your business” resonate deeply with entrepreneurs.
- Turning well-being treatments into business expenses. The Founder Mental Health Pledge, a global nonprofit, advocates including mental health expenses as business expenses in Venture Capitalists’ term sheets. Some Venture Capitalists even operate health programs for their portfolio entrepreneurs. Policy makers could partner with public investments banks to incorporate similar provisions in loans and investments made to entrepreneurs.
- Enhancing access to social security for entrepreneurs. Entrepreneurs often fall outside traditional social security systems and are rarely eligible for unemployment insurance. Policies to give entrepreneurs access to unemployment insurance and healthcare provision would lower the strain on entrepreneurs’ wellbeing.
- Extending workplace health coverage to entrepreneurs. Workplace health and safety regulations are comprehensive for employees including international ISO standards, EU and US regulations. Comparable protections don’t exist for entrepreneurs. Health and safety agencies routinely monitor health risks for employees, but not their entrepreneurs. These existing regulatory frameworks and agencies could be expanded to protect entrepreneurs. Belgium is spearheading such legislation.
- Encouraging accelerators, incubators, and universities to develop entrepreneurs’ wellbeing skills. Organisations supporting entrepreneurs should build well-being skills and mental health awareness into their programs. A few already do, but this should be the rule, not the exception.
- Developing Peer Support Networks. Entrepreneur support organisations can help establish these, ideally led by mental health professionals. National business banks could provide seed funding to pilot local support circles and train mental health professionals in entrepreneurship-specific issues.
Entrepreneurs are essential to innovation and economic growth, but they can’t thrive without balance. Prioritising self-care and setting boundaries are critical, but systemic change is just as vital. Policy makers must act now to integrate mental health, social security and peer support systems to protect entrepreneurs and fuel vibrant economies.
OECD Work
SMEs and entrepreneurship | OECD
Inclusive entrepreneurship | OECD
OECD Contacts
Jonathan POTTER – Head of Unit – Entrepreneurship Policy and Analysis – SME and Entrepreneurship Division (SMEE) – Jonathan.POTTER@oecd.org
Raffaele TRAPASSO Head of Unit – Entrepreneurial Education and Skills – SME and Entrepreneurship Division (SMEE) – Raffaele.TRAPASSO@oecd.org
Lucia CUSMANO – Acting Head of Division – SME and Entrepreneurship Division (SMEE) – Centre for Entrepreneurship, SMEs, Regions and Cities – Lucia.CUSMANO@oecd.org
Johan Wiklund is the Al Berg Chair and Professor of Entrepreneurship at Whitman School of Management, Syracuse University, USA. His research interests include neurodiversity and mental well-being in entrepreneurship. He is considered a leading authority in entrepreneurship research with over 100 articles appearing in leading entrepreneurship and management journals and over 35,000 citations to his research. He is Editor-in-Chief for Entrepreneurship Theory and Practice, a premier entrepreneurship journal. A prolific advisor of Ph.D. students, he received the Academy of Management Entrepreneurship Division Mentor Award in 2011.
Ute Stephan is a Professor of Entrepreneurship at King's Business School, King's College London. A top 2% scientist worldwide, she has won multiple international research awards, including the 2025 JIBS Decade award. Her research focuses on entrepreneurial well-being, social entrepreneurship, and the human side of entrepreneurship. She leads significant international studies, including a 25-country COVID-19 entrepreneurship project. Recognized as a Fellow of the International Association of Applied Psychology, Stephan serves on prestigious editorial boards and has attracted over £3 million in research funding.