Rapid business growth and crises increase the risk of serious illness

Entrepreneurs often enjoy better health and live longer than other people from similar socio-economic backgrounds. But researchers warn that the pressures of entrepreneurship can have a dark side.

Using a series of official Finnish registers spanning two decades, the researchers behind the scientific paper “Knocking on heaven’s door” studied the health of entrepreneurs who are CEOs and CEOs who are employees. The results show that entrepreneurs are more likely to fall ill during their CEO tenure than employee CEOs. In the long run, this translates into an average of 1.8 years shorter life expectancy after the age of 50, compared to their non-entrepreneurial colleagues.

Responsibility affects health

The risks are greatest when the company grows rapidly over several years or when there are sudden, sharp declines in sales or the number of employees. These changes increase the risk of type 2 diabetes, cardiovascular disease and stroke.

The effects apply to both entrepreneurs and employee CEOs, suggesting that it is the responsibility for the company itself – not just personal financial risks – that affects health.

The researchers say the results show the importance of support for entrepreneurs, such as health screenings, stress management counseling, and help with human resources issues during periods of growth and crisis. They further argue that entrepreneurship can bring great opportunities, but also serious health consequences if not taken care of.

More about the article and the researchers
The article Knocking on Heaven’s Door? Entrepreneurship, Firm Growth, and Health Risks (open access) is published in the scientific journal Entrepreneurship Theory and Practice.

The authors are Jukka Partanen, University of Vaasa, Finland, Aino Tenhiälä, IE University, Spain, Teemu Kautonen, Universidad del Desarrollo, Chile, Markus Jokela, University of Helsinki, Finland, Daniel A. Lerner, IE University, Spain, and Alexander McKelvie, Syracuse University, USA.