The Psychological Cost of Entrepreneurship and How We Can Support You

Entrepreneurship is often celebrated as the epitome of success—quick growth, financial independence, and innovation. But behind the headlines of thriving startups and billionaire founders lies a much more complex reality. For many entrepreneurs, the road to success is paved with intense stress, self-doubt, and even moments of despair. The challenges of running a business can take a toll on mental health, relationships, and overall well-being.

The statistics are sobering. According to research, nearly 20% of small businesses fail in their first year, 50% within five years, and 70% after ten years. Even in Canada, while survival rates are slightly better, over 40% of small businesses don’t make it past five years. These numbers underscore the reality many entrepreneurs face: the weight of responsibility and the constant pressure to succeed. It’s no surprise that many entrepreneurs experience anxiety, depression, and burnout as they navigate these challenges.

The Hidden Struggles of Entrepreneurs

Entrepreneurs often feel the need to project confidence and resilience to investors, employees, and loved ones, masking the internal turmoil they might be experiencing. The pressure to constantly be "on" can be overwhelming. Long hours, poor sleep, neglect of personal health, and strained relationships can lead to a state of constant anxiety. Dr. Michael Freeman, a psychiatrist and researcher, has identified what he calls “mood vulnerability” among entrepreneurs—mental health struggles that are exacerbated by the unique pressures of running a business.

Research by the Canadian Mental Health Association (CMHA) found that nearly two-thirds of entrepreneurs experience depression at least once a week, with women and those in the early stages of their business more likely to report mental health issues. In fact, 46% of entrepreneurs say that mental health concerns interfere with their ability to work effectively.

A study by Dr. Freeman at the University of California revealed even more alarming statistics: Entrepreneurs are twice as likely to suffer from depression, six times more likely to have ADHD, and ten times more likely to experience bipolar disorder. These mental health issues can lead to cognitive impairment, burnout, and relationship difficulties, further complicating the already difficult task of managing a business.

How Entrepreneurial Stress Impacts Family-Owned Businesses

Family-owned businesses often bring additional challenges, such as blurred lines between business and personal relationships, succession planning issues, and family conflicts. A 2014 Deloitte survey revealed that only 17% of Canadian family businesses have a clear succession plan. This lack of preparation contributes to the high failure rate of family businesses, with only 30% surviving into the second generation and just 3% making it through to the fourth generation.

Given the unique pressures of entrepreneurship, it’s crucial that business owners not only focus on their business but also take care of their mental and emotional health. If left unaddressed, stress and mental health issues can impact both the individual and the business, making it more difficult to achieve success.

Our Approach: Supporting Entrepreneurs' Mental Health

At Wholesome Psychology, we understand the mental and emotional toll entrepreneurship can take. Our team of therapists is here to support you in navigating the challenges of business ownership, ensuring your mental, cognitive, and relational wellness are prioritized. Our services are designed to help you focus on growing your business while maintaining your overall well-being.

We offer a range of services tailored to the needs of entrepreneurs, including:

• Assessing and addressing psychological or cognitive concerns, including anxiety, depression, and substance use.
• Specialized counseling to help you overcome mental health challenges or substance dependency.
• Cognitive rehabilitation and support for individuals experiencing cognitive impairment due to concussion, illness, or aging.
• Support for family-owned businesses, including addressing conflicts, succession planning, and improving communication and boundaries.
• Building healthy and productive management teams to foster a positive work culture.
• Guidance on small business HRM, business development, and operational effectiveness, ensuring these stressors do not become overwhelming.

Our team includes therapists with deep experience in business leadership and family-owned enterprises. Many of our professionals have faced the same challenges you do, so they understand the pressures firsthand. We also collaborate with a network of medical and healthcare professionals to provide holistic support that addresses all aspects of your health.

If you are an entrepreneur struggling with the mental health toll of business ownership, know that you are not alone. Please contact us today to learn more about how we can support you on your journey toward well-being and business success.