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The Effects of Entrepreneurship on Mental Health

In the past decades, entrepreneurship has risen to be one of the fastest-growing careers in America. With this rising trend, one can only imagine many people turning to entrepreneurship as a viable career option. However, as with most skills or areas that are quickly expanding, there are still implications on mental health that arise from this profession. 

Mental health is typically associated with an individual’s well-being, fitness, and ability to perform daily tasks. Therefore, if a person chose a profession that affected their mental health negatively, it would be assumed that they would not be able to manage or operate at optimum capacity.

Effects Of Entrepreneurship On Mental Health

The effects of entrepreneurship on mental health can come in many different forms and often go unnoticed by those working within the industry.

The job of an entrepreneur is a high-stress, fast-paced environment which often results in long hours, blurry vision, and a lack of sleep. The pressure to succeed can result in a negative impact on self-esteem, stress disorders, and depression.

Positive Effects

A positive effect of entrepreneurship on mental health is the ability to develop one’s skills and talents for life after work.

An entrepreneur must possess multiple skills to run a business successfully. These skills can benefit future endeavors, such as pursuing further education or careers, leading a team, communicating with others, and making decisions. 

Working under deadlines and handling pressure is also a positive effect of entrepreneurship on mental health.

Negative Effects

A negative effect of entrepreneurship on mental health is the risk that comes with the job. 

Anyone who ventures into entrepreneurship does so at the owners’ risk. Not every business will succeed, and specific risks are involved in creating a business from the ground up. Some of these risks are financial, and some of them are emotional. When dealing with finances, there is the risk that an individual loses their life savings when a business fails.

There is also the risk of not making enough money to support one’s family in times of need. On the emotional side, some entrepreneurs experience a loss of self-esteem when they feel like they can no longer manage their own business.

Entrepreneurship also often comes with a lack of support from colleagues, which leaves individuals feeling isolated and alone.


The effects of entrepreneurship on mental health are varied. While it may be beneficial for one person to pursue a career in entrepreneurship, it can be detrimental for another. Making well-informed decisions is key to an entrepreneur’s healthy state of mind.