The 9 Reasons Why Entrepreneurs Experience Daily Stress

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Entrepreneurship is not for the faint of heart. It's a relentless pursuit that demands your soul, a Faustian bargain where stress is your constant companion. According to the Gallup Wellbeing Index, 45% of entrepreneurs report being stressed compared to 42% of "other workers."

But let's not trivialize these numbers. A more recent study found that mental health differences directly or indirectly affected 72% of entrepreneurs. This includes depression rates at 30% compared to 15% in the general population. Unfortunately, this is what an entrepreneur must assume when starting a business, knowing that he is about to step into a psychological war zone.

What Is A Main Reason Why Entrepreneurs Experience Daily Stress

So, before the Invisible Man delves into nine stressors that plague the entrepreneurial journey, understand this: the main reason why entrepreneurs experience daily stress is that they are in a constant battle with their own minds. It's a battle that many lose, but it's also a battle that can be won. 

A. 9 Main Reasons Why Entrepreneurs Experience Daily Stress

1. Profound Responsibility

Entrepreneurship is the closest thing to playing God in the secular world. You create jobs, you build products, you shape destinies. But with that power comes a crushing sense of responsibility. One wrong move and you're not just failing yourself; you're failing everyone who believed in you. 

According to a 2019 study, nearly half of entrepreneurs have one or more mental health conditions. The responsibility of being a creator and destroyer weighs heavily on the mind, exacerbating mental health issues. You're not just responsible for your own fate; you're responsible for everyone who has put their faith in you. Every time you sign a paycheck, you're not just transferring funds; you're holding someone's life in your hands. The weight of that responsibility can be crushing. 

Take the example of Henry Ford, a man who revolutionized the automotive industry but also grappled with the immense responsibility of his workers' livelihoods. Ford introduced the $5-a-day wage, not merely as a business strategy but as a moral obligation to his workers. Yet, he also employed strong-arm tactics to quash unionization efforts, showing the duality of responsibility.

Hence, the responsibility of an entrepreneur extends beyond the balance sheet. It seeps into the very fabric of society, affecting lives in ways that are often intangible yet deeply impactful. He is not just a business owner; he is a custodian of dreams, a guardian of futures. And that, gentlemen, is a burden that can break even the strongest among us.

2. Financial Risk

Financial risk is not just a line item on a spreadsheet; it's a palpable force that can either propel you to greatness or drag you into the abyss. According to Complex, tech entrepreneurs are willing to make sacrifices for the greater sake of their self-made enterprises, often risking it all to achieve massive wealth. But as they say, the higher the risk, the greater the fall.

In that sense, the entrepreneurial journey is akin to a high-stakes poker game, where the entrepreneur is not just betting chips, but his entire existence. Every investment, every expansion, every new hire is a gamble that could either catapult him to stardom or plunge him into oblivion. 

Fred Smith, the founder of FedEx took the audacious step of gambling his last $5,000 in Las Vegas to save his company from bankruptcy. He won, and FedEx lived to see another day.  Then there is Elon Musk, who invested all his PayPal earnings into SpaceX and Tesla, bringing him perilously close to bankruptcy. It was a gamble that could have ended disastrously, but instead, it paid off in spades.

The constant threat of financial ruin is not just a metaphor; it's a reality that many entrepreneurs live with daily. It's the Sword of Damocles that hangs over every decision, every investment, every risk. And while some, like Smith and Musk, manage to dodge the blade, others aren't so lucky.

3. Finding Talent

Entrepreneurs often find themselves in a perpetual hunt for the perfect team member, the so-called "unicorn" who possesses the right blend of skills, attitude, and potential. This search is not only time-consuming but also fraught with uncertainty. A wrong hire can set the company back in terms of both time and resources.

Entrepreneurs experience a head on competition against allure of startups, freelance opportunities, and even global opportunities for the right talent. Hence, this struggle to attract and retain the best minds can be a significant stressor for entrepreneurs.

Thomas Edison once employed Nikola Tesla, hoping that Tesla's innovative mind would complement his own inventions. However, the two had conflicting views on electrical systems—Edison was a proponent of direct current (DC), while Tesla was a champion of alternating current (AC). The mismatch led to Tesla parting ways, and eventually, the "War of Currents" ensued. This serves as a cautionary tale about the importance of aligning visions when making a hire.

Another example is during the Cold War, when the United States and the Soviet Union were locked in a battle to assert their technological and intellectual dominance, particularly in the field of space exploration. Scientists and engineers were the most coveted assets. The U.S. even initiated "Operation Paperclip" to recruit German scientists post-World War II. This intense competition for intellectual capital highlights the lengths to which organizations will go to secure top talent.

4. Long Working Hours

Work for entrepreneurs is a seductive mistress, one that promises glory and riches, but also a cruel taskmaster, demanding more and more of an entrepreneur’s time until there's nothing left. According to Gallup, 62% of business owners work over 50 hours a week, far exceeding the standard 40-hour workweek. 

Thomas Edison, for example, was a man so engrossed in his work that he often forgot to eat or sleep. He was known to work up to 100 hours a week during the peak of his inventive career. Same is the case for Elon Musk, the billionaire CEO of Tesla and SpaceX, who admitted to working 120-hour weeks at times. "You're gonna go a little bonkers if you work 120 hours a week," he said. 

The World Health Organization warns that working more than 55 hours a week can harm health, leading to exhaustion and burnout.

However, the never-ending grind is not just a lifestyle choice; it's a pact with the devil. An entrepreneur is trading time, health, relationships for the promise of success. But what is success if one is too burned out to enjoy it?

9 Main Reasons Why Entrepreneurs Experience Daily Stress

5. Uncertainty and Instability

In entrepreneurship, uncertainty is a constant with whom one must learn to dance with. The political, technological, economic, and environmental landscapes are ever-shifting, and business is at the mercy of these tectonic shifts. 

For instance, consider the startup environment during the 2020 pandemic. While venture funding in the U.S. fell 13 percent during the 2008 financial crisis, the impact of the pandemic was paradoxically less profound. An analysis by Crunchbase found that venture funding in January 2021 hit an all-time monthly high of $39.9 billion. Despite the uncertainty, a record number of unicorns emerged, proving that chaos can also be a breeding ground for opportunity if navigated correctly.

Ferdinand Magellan, the audacious Portuguese explorer, embarked on a journey that was fraught with uncertainties and instabilities from the outset. His mission was to find a westward route to the Spice Islands, a venture that promised untold riches but also posed unimaginable risks. Magellan's expedition was the epitome of entrepreneurial daring, a high-stakes gamble where the odds were overwhelmingly stacked against him.

From the moment he set sail, Magellan faced a litany of challenges that would have broken lesser men. Mutinies, storms, hostile native tribes, and the ever-present specter of starvation and disease were just a few of the perils that plagued his journey. Yet, Magellan pressed on, driven by a vision that was as grandiose as it was perilous. He was navigating uncharted waters, both literally and metaphorically, steering his fleet through the labyrinthine maze of uncertainty and instability that is the hallmark of any groundbreaking venture.

Unfortunately, Magellan never completed his journey. He was killed in the Philippines, and it was left to his subordinate, Juan Sebastián Elcano, to complete the first circumnavigation of the Earth. Magellan's venture was both a monumental success and a tragic failure. His fleet achieved what was deemed impossible, but he paid the ultimate price for it.

In entrepreneurship, as in the adventure navigated by Magellan, there are no guarantees. The only certainty is the relentless tide of uncertainty and instability that will test an entrepreneur’s resolve at every turn. And just like Magellan, an entrepreneur has a choice: to turn back in the face of adversity or to press on, knowing that the journey will be fraught with peril but also laden with opportunities for those audacious enough to seize them.

6. Overcommitment

In the high-stakes game of entrepreneurship, saying 'yes' to every opportunity is akin to juggling chainsaws. It's thrilling, it's exhilarating, and it's incredibly dangerous. Overcommitment is not just a logistical nightmare; it's a potential death sentence for the venture. The more an entrepreneur takes on, the less attention he can give to each commitment, and the quality of his work suffers as a result.

John DeLorean, the automotive engineer turned entrepreneur who founded the DeLorean Motor Company. Seduced by the allure of creating a futuristic sports car, DeLorean overcommitted himself and his company, leading to financial ruin and a tarnished legacy. His ambition outstripped his resources, and the result was a cautionary tale for entrepreneurs who bite off more than they can chew.

Another example of this is Adam Neumann, the co-founder of WeWork, who serves as a stark example of the dangers of overcommitment. Neumann's vision for WeWork was grandiose, to say the least. He wanted to do more than just provide co-working spaces; he wanted to "elevate the world's consciousness." From co-living spaces to a private elementary school, Neumann said 'yes' to a myriad of ventures that had little to do with WeWork's core business. The result was a disastrous IPO attempt and a dramatic fall from grace that led to his ouster.

7. High Expectations

A study titled "The Impact of Entrepreneurial Passion on Psychology and Behavior of Entrepreneurs" delves into the psychological toll of high expectations. It reveals that entrepreneurial passion, while a driving force, can also lead to a state of overconfidence in one's ideas and concepts. This overconfidence can set the stage for unattainable goals and, ultimately, failure. The study suggests that when entrepreneurial passion is at a high level, entrepreneurs may set themselves up for a fall by having expectations that are too high to meet.

Howard Hughes was one such entrepreneur. He was a man whose name became synonymous with both brilliance and madness. Hughes was an aviator, a filmmaker, and an entrepreneur. He had it all, but it was never enough. His relentless pursuit of perfection led him into a spiral of reclusive insanity. He died alone, a prisoner of his own towering expectations.

Another example is Yukio Mishima, a prolific Japanese author and playwright. He was thrice nominated for the Nobel Prize in Literature but never won. Despite his immense talent and recognition, he felt he had not achieved the level of perfection he sought. This unquenchable thirst for an ever-elusive success led him to a tragic, ritualistic suicide. Mishima's life serves as a cautionary tale of the dangers of being enslaved by one's own insatiable ambitions.

Take the example of Vincent van Gogh, a man whose name is synonymous with artistic genius yet lived a life marred by mental anguish. His pursuit of artistic perfection was so intense that it consumed him, leading to bouts of depression and ultimately his untimely death. Van Gogh sold only one painting during his lifetime, and his unmet expectations of himself were a constant source of internal strife.

8. Decision-Making Pressure

The entrepreneur's chair is a throne of thorns, each spike a decision that can either elevate or annihilate. A study on the psychological impact of entrepreneurial decision-making reveals that the direct effect of compulsive passion on entrepreneurial persistence and enterprise performance is significant. The weight of each choice is amplified by its potential to either propel you to success or plunge you into failure. 

Take the case of Robert Falcon Scott, the British explorer who led the ill-fated Terra Nova Expedition to the Antarctic. His decisions, often made under extreme pressure, led to the demise of his entire team. They were just 11 miles from a supply depot when they perished. Scott's last diary entries reveal a man haunted by his choices, a reminder that the burden of decision-making can be a heavy cross to bear.

The pressure to make the right decisions can be paralyzing, but it's this very pressure that shapes the entrepreneur. The question is, will it shape you into a diamond or grind you into dust?

9. Isolation

In the relentless pursuit of entrepreneurial glory, emotional bankruptcy is the hidden cost, seldom talked about but universally felt. An entrepreneur is so engrossed in balance sheets that he forgets that the emotional ledger is in the red.

J. Paul Getty, once the richest man alive, installed a payphone in his mansion for guests to use, a symbol of his emotional disconnect from even those within his inner circle. In fact, Getty's isolation was so profound that he couldn't bring himself to pay the ransom for his kidnapped grandson initially, calculating the cost over the value of human connection.

Then there was H.P. Lovecraft, the iconic horror writer. Despite his literary genius, Lovecraft died in relative obscurity and poverty, largely isolated due to his extreme views and inability to connect with others. His letters reveal a man who was emotionally bankrupt, a recluse in a self-imposed exile from society.

Hence, isolation is the silent killer in the entrepreneurial world, a slow poison seeps into your bones until you're nothing but a hollow shell. It's a Faustian bargain: you trade your humanity for the intoxicating allure of success. But remember, even in the darkest corners of isolation, the choice to reconnect is yours. Will you make it?

B. 9 Ways To Counter The Daily Entrepreneurial Stressors

9 Ways To Counter The Daily Stressors That Entrepreneurs Experience Daily

1. Shared Responsibility

In entrepreneurship, the lone wolf is a romantic but ultimately tragic figure. An entrepreneur may think he can go it alone, but the truth is, even the mightiest of predators hunt in packs. Shared responsibility isn't just a strategy; it's a survival mechanism. 

Take the example of the Wright brothers, Orville and Wilbur. They shared the monumental responsibility of inventing the first successful airplane. Their collaborative genius gave birth to human flight, proving that two heads are indeed better than one.

Beyond sharing responsibility is also the art of delegation, which is the entrepreneur's secret weapon, a skill that separates the titans from the mere mortals. It's the ability to distribute the weight of the venture across multiple shoulders, turning a crushing burden into a manageable load. Ray Kroc, who transformed McDonald's into a global empire was a master delegator, building a franchise model that allowed him to spread the operational responsibilities across a network of individual owners.

2. Financial Planning

In the high-stakes game of entrepreneurship, a financial safety net is the very buffer that allows an entrepreneur to take calculated risks without risking it all. Take the example of Ingvar Kamprad, the founder of IKEA. Kamprad lived frugally despite his enormous wealth, driving an old Volvo and flying economy class. His financial prudence provided a safety net that allowed IKEA to weather economic downturns and continue its global expansion.

3. Work-Life Balance

The entrepreneur's life is often an entanglement of work and personal life, where the boundaries blur. But an entrepreneur must create lines to reclaim his life. Take the example of Charles Dickens, who despite his prolific writing career, always made time for long walks and social engagements. He understood that the mind, like a field, must lie fallow to be fertile again.

According to an article on Customers.ai, scheduling "me" time is crucial for mental functioning and overall growth. It makes you more productive, improves your memory, and boosts your energy. So, whether it's a hobby, a book, or just a quiet cup of coffee, find an oasis and guard it jealously.

4. Adaptability

There comes a moment in every entrepreneur's journey when the winds change, and the current course leads only to ruin. That's when you pivot, abandoning the sinking ship for uncharted waters. And so, in business, adaptability is not a virtue; it's a necessity. An entrepreneur must become a chameleon, changing colors to match the ever-shifting landscape. 

Take the example of Steve Jobs, who was ousted from Apple, only to return and transform the struggling company into a tech behemoth. His ability to adapt and evolve is a lesson in thriving amidst chaos. Another example is Reed Hastings, the co-founder of Netflix, who did just that when he shifted from a DVD rental model to streaming, effectively dodging the bullet that killed Blockbuster.

5. Realistic Goal-Setting

Not all goals are created equal. The art of the possible is in setting targets that stretch you without breaking you. Take the example of Konosuke Matsushita, the founder of Panasonic. He started with a simple goal: to create a better light socket. From that modest beginning, he built an empire. Matsushita understood that achievable targets are the stepping stones to grand visions.

Hence, creating unrealistic goals is like flying too close to the sun; and one is only bound to get burned. Eike Batista, once Brazil's richest man, declared he would become the world's richest. His overreach led to a spectacular fall from grace, culminating in bankruptcy and imprisonment.

6. Time Management

Time is the currency of life, and like any currency, it must be invested wisely. Think of your day as a time bank. Every task is an investment, and the ROI is your success. Take the example of Benjamin Franklin, who meticulously planned his days, allocating time for work, study, and leisure. His time management skills were legendary, contributing to a life of prolific achievements.

By the way, effective time management doesn’t mean multi-tasking. In fact, today, multitasking is glorified, luring entrepreneurs with the promise of efficiency but delivering only chaos. A study in the Journal of Experimental Psychology found that multitasking can reduce productivity by as much as 40%. So, the next time you pride yourself on juggling multiple tasks, remember the story of Clifford Stoll, an astronomer and author who debunked the myth of multitasking in his own life by dedicating focused time to individual projects.

Daily Stressors That Entrepreneurs Experience And How To Manage Them

7. Talent Strategy

Talent strategy is not just about hiring; it's about maintaining a pipeline of skilled warriors ready to step into the fray. Akio Morita, co-founder of Sony. Morita was known for his unconventional recruitment strategies, often hiring people based on their potential rather than their qualifications. This approach allowed Sony to stay ahead of the curve, constantly innovating and adapting.

Retention becomes the next frontier in the talent strategy. Herb Kelleher was the co-founder of Southwest Airlines who put his employees first, creating a culture of respect and camaraderie that resulted in one of the lowest turnover rates in the airline industry.

8. Using Decision Frameworks

A decision framework is your map through this perilous terrain, a tool that allows you to weigh the risks and rewards with surgical precision. One method was the Eisenhower Box, developed by Dwight D. Eisenhower, who used this decision matrix during World War II to prioritize tasks. His method is still used today as a time-management tool.

Then there is a contrasting method, which is a gut check. Soros, the legendary financier often spoke of a "gut feeling," a physical discomfort that guided him when to buy or sell. His instincts, backed by analysis, made him one of the most successful investors of all time. 

When you should use either of these methods of decision making shouldn’t be the question. Rather, an entrepreneur should use some decision making framework to reduce the stress in the first place. 

9. Social Support

A brotherhood of like-minded souls can be your sanctuary. This isn't about networking; it's about forging bonds that can weather the harshest storms. Take the example of the Rat Pack, a group of entertainers led by Frank Sinatra. They were more than just colleagues; they were a support network that helped each other both professionally and personally. Their camaraderie is a lesson in the power of social support.

Abraham Lincoln had a unique method as well. He used to write "hot letters" to vent his frustrations but never sent them. This act of emotional release allowed him to face the challenges of his presidency with a clear mind.

Hence, social support is the final piece of the puzzle, the keystone that holds your arch of redemption in place. It's the human element, the reminder that even in the dog-eat-dog world of business, you're not alone. Will you embrace it, or will you continue to wander the wasteland, a lone wolf howling at the moon?

C. Conclusion 

So, why endure this ordeal? Simple. Because the grind, the ceaseless toil, has intrinsic value. It shapes you, moulds you into a version of yourself that's battle-hardened and unbreakable. After all, isn’t this what an entrepreneur would most likely be interested in?

Hence, entrepreneurship is your personal odyssey, a tumultuous voyage that promises neither safe harbour nor easy passage. The question then is not whether you'll encounter storms, but how you'll navigate through them. Will you be dashed against the rocks, or will you emerge, battered but unbroken, on some distant shore? The choice, as always, is yours.