You’re a leader, entrepreneur, or both. 

You’re bold, innovative, and decide to run a business/team, or start one. In the beginning, you’re wide-eyed, sparkly, giddy, and energized. You’re brave, bold, and ready. You go full-steam ahead, ready to change the world. 

But then you’re 6 months down the road, 12 months, 2 years into the day in and day out demands of leading. The wide-eyed turns to teary-eyed, the sparkle turns to stress, the giddy turns to grit, and the energy turns to fumes. 

You may start asking, “What happened? Where did things go wrong? Where did I go wrong?”

I have a little piece of information for you… you actually didn’t do anything wrong. And also, as it turns out, you’re not alone.  

In the dynamic landscape of leadership and entrepreneurship, where the decisions made under pressure and responsibilities are immense, mental health often takes a backseat. And after a while, that backseat comes creeping into the driver’s seat if it’s not woven into the road trip that is leading in business. 

Leaders and entrepreneurs are not immune to mental health challenges; in fact, they are MORE susceptible (more on this shortly). Addressing this issue is crucial for both individual well-being AND organizational success, so let’s talk about it. 

The Risks of Leading:

What if I told you leadership comes with inherent risks to mental health? Here’s what I can tell you from over a decade of being in the medical field… mental health is not a random occurrence. What I mean by that is mental health is usually a complex process that is driven around early life events, genetics, and stressors in the present. One of the biggest contributors I’ve seen to imbalances in mental health have to do with psychological stressors. And leadership roles come with a unique and plentiful set of stressors. 

Stress, when ongoing, increases incidence of mental health issues, especially anxiety and depression. Whether it’s the pressure to meet targets, to raise money or make money, navigate uncertainties, or maintain team morale, leaders and entrepreneurs are constantly under the spotlight to “make it happen.” These types of stressors compound in individuals over time, leading to poorer mental health outcomes. When it comes to leaders and entrepreneurs, the numbers don’t lie. 

A study published in the Harvard Business Review revealed that 61% of leaders surveyed reported experiencing symptoms of burnout at least sometimes. Moreover, the demands of modern leadership extend beyond the traditional 9-to-5, with technology blurring the boundaries between work and personal life. 

Furthermore, research suggests that specifically entrepreneurs are disproportionately affected by mental health issues compared to the general population. According to a study published in the Journal of Business Venturing, approximately 72% of entrepreneurs surveyed reported experiencing mental health concerns, with depression and anxiety being the most common. 

Lastly, a meta-analysis conducted by researchers at the University of California, San Francisco, found that entrepreneurs are 50% more likely to report having a mental health condition compared to non-entrepreneurs. The unique stressors of entrepreneurship, such as financial uncertainty, long working hours, responsibility over others, and the pressure to succeed, can contribute to heightened levels of stress, anxiety, and depression among entrepreneurs.

The Stigma Surrounding Mental Health for Leaders and Entrepreneurs:

Despite growing awareness about mental health, there remains a stigma attached to seeking help among leaders and entrepreneurs. Many feel they should project strength and resilience at all times, much of it fueled by societal pressures and expectations. This reluctance to acknowledge vulnerabilities can lead to feelings of isolation, shame, and secrecy, which increase psychological stress, which over time exacerbates and breeds mental health issues. 

In a culture that says, “success is to slay all day,” especially when it comes to those in charge, there is a huge stigma for entrepreneurs and leaders to talk about their vulnerability and struggles. There is often a fear of what will happen if they do. “Will I be trusted less? Be looked at as weak or as a failure? How will things get done? How will I get support if I am the one who supports?” These questions and fears are valid, however we have to do something to start shifting the stigma, or else these outcomes are going to get worse. 

The good news is that addressing mental health in leaders and entrepreneurs is possible, potent, and the outcomes go far beyond the individual…

The Impact of Leaders and Entrepreneurs Addressing Mental Health:

If you think addressing mental health and leaders is going to put a wrench in growth and performance, think again! Research has found that when leaders address mental health, they have:

1. Improved Decision-Making- According to a study by the American Psychological Association, executives who engage in self-care practices to improve mental health have more effective decision making. 
2. Enhanced Communication- Leaders who are mentally healthy are more likely to communicate in a way that fosters transparency, trust, and collaboration with their employees. Furthermore, a survey by Mental Health America found that 80% of employees are more likely to stay with an employer that values open communication about mental health. 
3. Increased Innovation- Mental well-being fosters creativity and innovation, with clear headedness and ease that allows ideas to flow. This well-being flowing from leadership helps create a culture of well-being and innovation for employees. 
4. Higher Employee Engagement- Leaders who openly address their mental health demonstrate empathy and understanding, leading to higher levels of employee engagement. A study by Gallup found that engaged teams are 21% more profitable. 
5. Reduced Turnover in the Organization- When leaders prioritize mental health, it creates a culture where employees feel supported and valued. This, in turn, leads to higher employee retention rates. According to the Center for Workplace Mental Health, companies that prioritize mental health have a turnover rate that is 25% lower than average.
6. Better Organizational Performance- Ultimately, when leaders prioritize their mental health, it contributes to a healthier organizational culture, increased productivity, and improved performance overall. A study by PwC found that for every dollar invested in creating a mentally healthy workplace, companies saw a return of $2.30.

Navigating the Future: 

To address mental health challenges among leaders, organizations must foster a culture of openness and support, and leaders need to be willing to open up and talk about it in safe spaces. This includes providing resources such as counseling services, promoting work-life balance, and offering leadership development programs that incorporate well-being initiatives. Entrepreneurs are encouraged to connect with services that provide services that promote mental well-being for them, and to prioritize building a healthy culture that prioritizes well-being during the formation of the venture. VC firms can be huge for entrepreneurs if they start prioritizing mental health. As you can see from the data, if you want to mitigate the risks in businesses, invest in mental health resources for the leaders. 

Leadership and mental health are intertwined, and ignoring the latter can have detrimental effects on both individuals and organizations. By recognizing the challenges leaders face and implementing strategies to support their well-being, we can pave the way for healthier, more resilient leadership in the future. Remember, leaders and entrepreneurs are human, too, deserving of care, compassion, and support. It’s time to break the silence surrounding mental health in leadership and prioritize the well-being of those who guide us forward. Preventing and addressing mental health issues is crucial for both the well-being of leaders and entrepreneurs, success of their ventures, and health of the people of which they serve.

This journey to break the stigma around mental health in leadership and entrepreneurs is not going to be overnight or easy. However, the first step is talking about it, and realizing that you are not alone. 

NOTES:

Research suggests that entrepreneurs are disproportionately affected by mental health issues compared to the general population. According to a study published in the Journal of Business Venturing, approximately 72% of entrepreneurs surveyed reported experiencing mental health concerns, with depression and anxiety being the most common.

Furthermore, a meta-analysis conducted by researchers at the University of California, San Francisco, found that entrepreneurs are 50% more likely to report having a mental health condition compared to non-entrepreneurs. The unique stressors of entrepreneurship, such as financial uncertainty, long working hours, and the pressure to succeed, can contribute to heightened levels of stress, anxiety, and depression among entrepreneurs.

Despite the prevalence of mental health challenges among entrepreneurs, there is often a stigma associated with seeking help, as it may be perceived as a sign of weakness or failure. However, addressing mental health issues is crucial for both the well-being of entrepreneurs and the success of their ventures.

Creating a supportive environment that encourages open dialogue about mental health, providing access to resources such as counseling and mental health services, and promoting work-life balance can help mitigate the impact of mental health issues on entrepreneurs and foster a healthier entrepreneurial ecosystem.

When leaders address their mental health, it sets a positive example for the entire company and can significantly impact performance in various ways:

1. **Improved Decision-Making:** Leaders who prioritize their mental health are better equipped to make sound decisions under pressure. According to a study by the American Psychological Association, executives who engage in self-care practices, including prioritizing mental health, are more effective decision-makers.

2. **Enhanced Communication:** Leaders who are mentally healthy are more likely to communicate effectively with their teams, fostering transparency, trust, and collaboration. A survey by Mental Health America found that 80% of employees are more likely to stay with an employer that values open communication about mental health.

3. **Increased Innovation:** Mental well-being fosters creativity and innovation. Leaders who prioritize their mental health create an environment where employees feel comfortable expressing new ideas and taking calculated risks. According to research by Deloitte, organizations with a culture of well-being are 2.3 times more likely to be innovative.

4. **Higher Employee Engagement:** Leaders who openly address their mental health demonstrate empathy and understanding, leading to higher levels of employee engagement. A study by Gallup found that engaged teams show 21% greater profitability.

5. **Reduced Turnover:** When leaders prioritize mental health, it creates a culture where employees feel supported and valued. This, in turn, leads to higher employee retention rates. According to the Center for Workplace Mental Health, companies that prioritize mental health have a turnover rate that is 25% lower than average.

6. **Better Organizational Performance:** Ultimately, when leaders prioritize their mental health, it contributes to a healthier organizational culture, increased productivity, and improved performance overall. A study by PwC found that for every dollar invested in creating a mentally healthy workplace, companies saw a return of $2.30.

By addressing their mental health, leaders not only benefit personally but also positively impact the company’s culture, performance, and bottom line.

Take care of yourself!