# 2. Prevalence of Stress and Its Effects among SME Entrepreneurs

## 2.1 Prevalence of Stress among SME Entrepreneurs

Entrepreneurs are individuals with leadership tendencies and independent work arrangements. As such, they can be susceptible to a higher risk of stress. According to Rokach (2014), individuals in leadership positions (in the fields of education, government, business, and organizations) may be more vulnerable to stress, alienation, loneliness, and emotional turmoil. The author points out that “these may lead to health problems and negatively affect social and familial relationships”, which could ultimately have negative impacts on their productivity. Akiskal and others (2005) studied 263 professionals affiliated with an outpatient psychiatric practice and found that out of the seven job classifications studied (physicians, lawyers, managers, industrialists, architects, journalists, and artists), _self‐made industrialists_ had the highest rates of hyperthymic and bi‐polar traits.<sup>7</sup> Health literature broadly highlights that individuals with entrepreneurial career intentions are prone to Attention Deficit Hyperactivity Disorder (ADHD)‐ like disorders, as compared to individuals without entrepreneurial intentions (Dimic and Orlov 2014; Verheul and others 2013).

Empirical evidence is consistent in showing the problem of ongoing stress and anxiety symptoms in entrepreneurs. Boyd and Gumpert (1983) provided the first empirical evidence, which showed that up to 65 percent of entrepreneurs (out of a sample of 450) experienced physical stress symptoms at least once a week. They found that entrepreneurs encounter a ‘ _depth and range’_ of problems daily. As such, entrepreneurs are likely to report chronic or ongoing stress. Grant and Ferris (2012) provide a comprehensive description of the stress‐related problems faced by entrepreneurs summarized here. Business owners typically operate in highly competitive environments facing a substantial degree of risk and variability (Kariv 2008). In addition, unlike salaried employees, entrepreneurs are accountable for the performance and continuance of their firms (Parasuraman and Simmers 2001). This often results in a stronger identification with their work, a sense of being indispensable, and a heavier workload than that of salaried employees, with many working more than 60 hours per week (Bradley and Roberts 2004; Dolinksy and Caputo 2003; Eden, 1975; Prottas and Thompson 2006) Furthermore, stress can often impact other aspects of the lives of entrepreneurs, with fatigue, irritability, and other stress symptoms spilling over into the non‐work domain or negatively impacting health (Buttner 1992; Jamal 1997; Jamal and Badawi 1995; Lewin‐Epstein and Yuchtman‐Yaar 1991; Parasuraman and Simmers 2001; and Westerlund and others 2004).

Greater mental health problems appear to co‐exist with higher life satisfaction for entrepreneurs, highlighting the non‐linear nature of the “well‐being” problem. There is considerable evidence that a turbulent work environment takes its toll on organizational leaders and workers’ mental well‐being (Andrea and others 2009; Melchior and others 2007; and Nielsen and Daniels 2012).

> 7 Hyperthymic temperament, or hyperthymia is a proposed personality type characterized by an exceptionally positive mood and disposition. Bipolarity is a personality type characterized by both manic and depressive episodes, or manic ones only.

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