Health and mental wellbeing is a major issue in the startup world. Entrepreneurs are faced with a variety of specific challenges, like finding funding and meeting the arduous goals for performance — all while attempting to find the ideal balance between work and life. This is a huge strain on a person’s mental wellbeing.
According to a report by the Business Development Bank of Canada, more than 50% of Canadian entrepreneurs suffer from mental health problems, mainly due to financial stress.
Entrepreneurs who are HTML0-related are twice more likely to have having a history of depression throughout their lives as they are triple the likelihood of being diagnosed with bipolar disorder and are three times as likely to addiction and substance abuse. They are equally likely to consider suicide or to be admitted to an institution for psychiatric disorders.
Yet many entrepreneurs face difficulties getting help with mental health. The most significant obstacle is cost; however, the possibility of being perceived as being too vulnerable is another issue. Many entrepreneurs worry that being perceived as fragile or insecure could make it difficult for them to be able to secure financing.
Because entrepreneurs are the foundation of economic expansion and development, the significance of providing mental health care for entrepreneurs can’t be overemphasized. Being aware of and taking care of mental health is not only an issue of compassion; it is also a vital investment in society overall.
The “founder’s dilemma
Steve Jobs, the founder of Apple, was once compared to beginning a venture to make a dent in all of the stars. That’s why it isn’t easy. Many people are attracted to entrepreneurialism however, very few succeed commercially. Many quit because they should not.
Entrepreneurs often struggle to find the balance of work and family. (Shutterstock)
Noam Wasserman, the dean of Yeshiva University’s business school, published a piece on”the “founder’s dilemma” in 2008. According to him, the issue is about the conflict between accepting funds from outside investors and restraining losing control of one’s business and sometimes being fired completely.
Fast forward to 15 years later, and things have changed dramatically in the startup world. The early investors can get large stock option grants or loans from the founders. The burden of debt in the uncertainty of financial markets could put a firm’s ability to innovate and flexibility on the line.
To protect their financial position, Some founders are caught in the cycle of continuously soliciting funds to help them get out of debt. The quest to find a balance between short-term funding and long-term efficiency can cause any entrepreneur to be in trouble.
Pressures to be built up
The pressure startup founders have to face is much greater than it has been in the past two decades. Entrepreneurs are struggling to decide whether their efforts are worthwhile.
The first thing they notice is that their credit runways are a sharp cliff. In the first quarter of 2023, global venture capital financing fell by 48 percent in comparison to the previous year. The figures for North America, second-quarter venture expenditure was the lowest in more than three years.
The second reason is that talent is in short supply and costly. Third, exit possibilities for founders in later stages via either an initial public offering or a sale to a larger company disappearing. This is leading to the sacking of employees amid increasing pressures to discover the “path to profitability” as early financial backers try to sell off their investments.
As per Crunchbase Reports, the number of mergers and acquisitions by venture capital-backed firms that are based within the United States this year is likely to slow the most since 2013. The amount of money invested in what was the year before considered to be booming industries like healthcare technology has dwindled drastically.
In this high-interest and cash-strapped setting, startups face mental and financial crises.
Addressing mental health challenges
Research conducted in the past on entrepreneurial and business psychological health can help us find promising solutions. There are a myriad of inexpensive or free solutions to entrepreneurs’ mental health problems in the current economic climate.
First, investors outside of private ventures should be able to qualify not just in terms of net earnings or net worth; however, they must also be trained in relation to their commitment to the health of the population generally and mental health, in particular.
This is built on the experience and research that underlie the Founder Mental Health Pledge created by serial entrepreneurs Naveed Lalani and Brad Baum and supported by founders across the world. The pledge seeks to remove the stigma from mental health and view it as a cost of business that includes therapy, coaching, and group counseling.
