Startups and Depression

Ben NevilleSavvas Petrou

The link❖ The stresses involved with startups can and do

cause mental health problems❖ Dr. Michael Freeman one of the first to make

the link ❖ Are entrepreneurs ‘touched with fire’?❖ Of 242 entrepreneurs surveyed, 49%

reported having a mental health condition❖ Entrepreneurs 30% more likely to suffer from

depression

SimVenture - Stress level indicator❖ The simulation takes into account workload and

business performance, reflecting the effects this would have on a startup entrepreneur ❖ For example, one alert at the end of a month

states ‘Overwork is making you tired, which will increase your stress level’

❖ This intends to represent a real life scenario, in which the entrepreneur has another full-time job and therefore limited time

SimVenture - How stress levels change

❖ After a couple of months our status changed from ‘happy’ to ‘content’, and after roughly six months this hit ‘stressed’. This was due to a number of factors:❖ A lack of money❖ Overwork❖ State of the business - i.e. lack of orders

❖ Stress equals low efficiency - vicious circle

Is this a real issue?❖ startupdepression.com

❖ ‘A small collection of resources that offer professional help for those battling depression’

❖ Countless articles and high profile suicides ❖ Jody Sherman founder of Ecomom❖ Ben Huh CEO Cheezburger Network humour websites

“When death feels like a good option”❖ Sean Percival former MySpace vice president “When it’s

not all good, ask for help”

Can you be successful and depressed?❖ SimVenture - even when money was coming in overwork remained

detrimental to health❖ Niall Harbison - co-founder of Simply Zesty

❖ In his article “Startups and Depression: The dark side of entrepreneurship” he talks about his experiences running and building a startup

❖ ‘Despite living what some might think is the “entrepreneurial dream” I have suffered from very bad depression throughout all of my success and failure’

❖ ‘How could you have depression if you had a booming startup, a nice house, great friends and a lovely car?’

MCQ❖ Which statement is true about entrepreneurs and stress?❖ 1. Stress equals low efficiency❖ 2. Limited time leads to stress which leads to low efficiency❖ 3. The relationship of stress, efficiency and time are all interdependent and

leads to a vicious cycle❖ Which assumption is true of SimVenture❖ 1. The entrepreneur has a family to look after and therefore increased stress

levels ❖ 2. The entrepreneur is attempting several start up business’ and therefore

limited time❖ 3. The entrepreneur has a full time job and therefore limited time❖ 4. All of the above❖ Which is a factor of increasing stress levels?❖ 1. Overwork❖ 2. Lack of money❖ 3. State of business❖ 4. All of the above

References❖ Bruder, J. (2013). The Psychological Price of Entrepreneurship.Available:

http://www.inc.com/magazine/201309/jessica-bruder/psychological-price-of-entrepreneurship.html. Last accessed 8th Feb 2016.

❖ Carson, B. (2015). There’s a dark side to startups, and it haunts 30% of the world’s most brilliant people. Available: http://uk.businessinsider.com/austen-heinzs-suicide-and-depression-in-startups-2015-7?r=US&IR=T. Last accessed 8th Feb 2016.

❖ Freeman, M . (2015). Are Entrepreneurs “Touched with Fire”?. . 1 (1), p3-4.

❖ Harbison, N. (2014). Startups and depression: the dark side of entrepreneurship. Available: http://www.theguardian.com/technology/2014/aug/06/entrepreneurship-startups-depression. Last accessed 8th Feb 2016.