While the entrepreneurship literature has so far largely focused on mental health, our knowledge of entrepreneurs’ physical health has remained rather limited. In our study, “The significance of entrepreneurs’ physical health issues for venture distress and exit”, published in the Journal of Business Venturing Insights, we explore the impact of entrepreneurs’ physical health on venture distress and exit compared to mental health and other issues.
How does entrepreneurs’ physical health influence venture distress?
Our study, based on data from the Flemish support provider Dyzo, examines 1752 entrepreneurs in distressed ventures in the Flemish region of Belgium. Our exploratory analyses reveal that although both physical and mental health issues contribute to venture distress, entrepreneurs in distressed ventures are significantly more likely to point to physical rather than mental health issues. While physical health issues are further considered an origin of the distress situation by more than 10% of all entrepreneurs, other factors such as family issues, mismanagement, business model issues and market force-related issues seem to be even more prevalent.
How does entrepreneurs’ physical health influence venture exit?
Physical health issues are not only associated with venture distress, but also increase the likelihood of venture exit. We find that entrepreneurs dealing with physical health issues are more likely to exit their ventures, often involuntarily, rather than continuing to manage them. We do not find such an association between mental health issues and venture exit. Our work thus indicates that – contrary to what is often assumed – physical health issues undermine entrepreneurial activity more than mental health issues.
In exploring these dynamics, we further examined varying degrees of physical health issues, categorizing them based on the extent of deterioration. We find that the relationship above particularly holds for more deteriorating physical health issues, while we find no statistically significant relationship between less deteriorating physical health issues and venture exit.
What can researchers do?
Most importantly, in light of the growing scholarly attention to entrepreneurs’ mental health, our study underscores the necessity of also considering entrepreneurs’ physical health. To advance the understanding of physical health’s role in entrepreneurship, researchers can explore ways to objectively assess entrepreneurs’ physical health using metrics and monitoring tools. Such approaches would provide more concrete insights into how specific health issues affect business outcomes. Researchers might also focus on longitudinal studies that allow for a nuanced understanding of the ongoing impact of physical health challenges. By conducting these in-depth studies, researchers can track changes over time and provide evidence-based insights on how physical health deteriorations translate into venture challenges. Additionally, expanding research to different entrepreneurial contexts—such as high-growth startups, larger enterprises, or regions with limited healthcare access—would enhance the generalizability of findings, helping to create a more comprehensive picture of how physical health influences entrepreneurial outcomes across various settings.
What can practitioners do?
The findings of our study provide insightful practical implications for several parties in the entrepreneurial ecosystem:
First, entrepreneurs could benefit from implementing specific strategies, such as scheduling regular health check-ups and prioritizing self-care practices, to proactively manage their physical health and reduce the risk of venture distress attributable to health issues.
Second, support providers could facilitate strategies for sustaining business operations during health challenges by offering tailored programs that address both physical health awareness and crisis management, such as contingency plan development or the temporary hiring/unemployment of staff. Support providers could also make entrepreneurs aware of the importance of managing stakeholder perceptions and expectations when faced with physical health issues.
Third, policymakers could foster an entrepreneurial ecosystem that prioritizes health by promoting accessible health insurance, flexible work arrangements, and public awareness campaigns on the importance of physical health for venture performance. Creating platforms for entrepreneurs to share experiences and best practices related to health management could foster a supportive community that prioritizes physical health and well-being.
Read the full paper here to find out more: https://www.sciencedirect.com/science/article/pii/S2352673424000544
Author bios
Yasmine Van Heghe is a PhD candidate at the Department of Marketing, Innovation and Organisation at Ghent University. Her research interests include entrepreneurial health, wellbeing and student entrepreneurship.
Mirjam Knockaert is a Professor of Entrepreneurship at Ghent University and a visiting professor at the Technical University of Munich. Her research focuses on entrepreneurship in teams, corporate governance and academic entrepreneurship.
Holger Patzelt is a Professor of Entrepreneurship at the Entrepreneurship Research Institute, Technical University of Munich. He conducts research on business ventures, strategic entrepreneurship and startup failure. His work covers both psychological aspects, such as cognition and decision-making by entrepreneurs, and economic factors, such as the behavior and success of entrepreneurial organizations.
Johan Wiklund is the AI Berg Chair and Professor of Entrepreneurship at Whitman School of Management, Syracuse University. His research interests include neurodiversity and mental well-being in entrepreneurship.
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