Entrepreneurs driven by independence and creativity are far more likely to feel satisfied with their lives than those motivated by status or money, according to new research from King's Business School.
The study, published in the Journal of Business Venturing, examined responses from more than 3,000 entrepreneurs across 143 regions in 18 European countries. It found that the values drawing people into entrepreneurship - not just the pressures of running a business - strongly shape their wellbeing.
The research also shows that entrepreneurs feel better when their values align with the norms of their local business environment - especially in regions that support self-direction, or place greater emphasis on fairness and equal treatment. By comparison, areas that rewarded status did little to protect highly competitive or status-driven entrepreneurs from poorer wellbeing.
Some of the most supportive regions were found in specified parts of Germany, Italy, Spain and Cyprus, showing that local culture can vary significantly even within national borders.
Entrepreneurial values act as a double-edged sword for wellbeing. Values linked to independence and creativity are beneficial, while values linked to status and external rewards come at a personal cost.
Pierre-Jean Hanard, lead author of the study and PhD researcher at King's Business School
While entrepreneurship is often promoted as a path to freedom and self-expression, the researchers say the motivations behind that choice can boost or undermine founders' mental health. Entrepreneurs who prioritise openness to change - valuing independence, creativity and novelty - reported higher life satisfaction and lower psychological distress.
But those motivated mainly by financial success, status or achievement experienced lower life satisfaction, weaker work engagement and greater distress.
Co-author Professor Ute Stephan, Professor of Entrepreneurship at King's Business School, said: "Entrepreneurship allows people to express what they care about, yet some of these core motivations can be draining. It's important for entrepreneurs to know that what draws them into entrepreneurship may also push them towards burnout."
Professor Uta Bindl, Professor of Organisational Behaviour at King's Business School and also a co-author, added: "When personal and cultural values align, wellbeing improves. When they conflict, entrepreneurs face greater emotional strain."
The authors say the findings should encourage policymakers, local enterprise bodies and investors to look more closely at regional entrepreneurial cultures, and for founders to consider not just what they want to build, but where they choose to build it.
