Depression and entrepreneurial exit

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Abstract

Entrepreneurs frequently work in highly unpredictable environments and are involved in a wide variety of tasks for which they are often ill prepared. Good mental health is of utmost importance to adequately manage the challenges, adversity, and stressors that come with running a business. However, little is known about how mental health affects entrepreneurs and the performance of their businesses. Drawing on the literature of personality and entrepreneurial exit as well as on evidence from large-scale survey data on the relation between depression and entrepreneurial exit, we show that there is ample opportunity for research investigating the relation between mental health and entrepreneurship. Five directions for future research on this topic are highlighted.

Original languageEnglish
Pages (from-to)323-339
Number of pages17
JournalAcademy of Management Perspectives
Volume32
Issue number3
DOIs
Publication statusPublished - 23 Aug 2018

Bibliographical note

Funding Information:
This paper uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The HILDA Project was initiated and is funded by the Australian Government Department of Social Services (DSS) and is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute). The findings and views reported in this paper, however, are those of the authors and should not be attributed to either DSS or the Melbourne Institute. C. A. Rietveld acknowledges funding from the Netherlands Organisation for Scientific Research (NWO Veni grant 016.165.004). The present study is done as part of the initiatives of the Erasmus University Rotterdam Institute of Behavior and Biology. We would to thank Phillip Phan, Joern Block, participants of the Entrepreneurs’ Mental Health Workshop at Syracuse University (October 2016), and two anonymous reviewers for valuable comments on earlier versions of this paper.

Publisher Copyright:
© Academy of Management Perspectives.

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