The Dark Side of Business Ownership

When you scroll through LinkedIn’s news feed, you see success stories, happy people, and (supposedly) sage advice that will propel your career and business into the stratosphere of success.

However, there is a dark side to business ownership that few talk about.

The reality is that mental health issues for business owners are a real problem. For example, when compared to a control group, business owners reported experiencing depression 30% more often. Substance use was 12% higher, and bipolar disorder was 11% more prevalent for business owners than for the general population. Moreover, the existence of diagnosable ADHD disorders was 29% higher in the business owner group than in the general population.[1]

One-third of the entrepreneurs had two or more mental health conditions, and 18% reported three or more. The study concluded that “Integrating knowledge about psychiatric conditions with research on personality traits can broaden the understanding of how mental health-related traits, states, and family history can influence entrepreneurial outcomes.”

Translation: “If business owners resolve their mental health issues, they will have better functioning, more successful businesses.”

The surprising aspect of all this is that business owners themselves know something is wrong. 75% report being concerned about their mental health,[2] yet relatively few do anything about it.

CNBC reports that the rate of psychopathology (what Babiak calls sociopathy) is 20% higher in the business owner community when compared to the general population. They contend that 1 in 5 “business leaders may have psychopathic tendencies.”[3] The author concludes that this may not be bad, but that’s a bit like saying you’re the best-looking horse in the glue factory. Peruse books like Snakes in Suits[4] and Why Do So Many Incompetent Men Become Leaders[5] and perhaps you’ll understand how psychopaths are not good for business or even the general population.

In my coaching practice, I examine my clients’ psychology and business. My clients complete six assessments that consider personality, strengths, derailers, values, and judgment, along with a 360-degree review. My assessment process is thorough, and the results are life-changing and life-giving. My assessment process surfaces mental health issues that we can manage through the coaching process. As a business owner and a psychologist, I know how to integrate both domains into a coherent experience.

For those business owners who desire a more comprehensive coaching experience and dare to face the realities of their mental health, my coaching is what they need.

 Bill English, PhD, MA, LP

[1] Freeman, M.A., Staudenmaier, P.J., Zisser, M.R. et al. The prevalence and co-occurrence of psychiatric conditions among entrepreneurs and their families. Small Bus Econ 53, 323–342 (2019). https://doi.org/10.1007/s11187-018-0059-8

[2] Jeff Haden, “A New Study Says 75 Percent of Entrepreneurs are Concerned About Their Mental Health.” May 18, 2023, inc.com, https://www.inc.com/jeff-haden/a-new-study-says-75-percent-of-entrepreneurs-are-concerned-about-their-mental-health.html

[3] Tomas Chamorro-Premuzic, “1 in 5 business leaders may have psychopathic tendencies—here’s hy, according to a psychology professor.” April 8, 2019, cnbc.com. https://www.cnbc.com/2019/04/08/the-science-behind-why-so-many-successful-millionaires-are-psychopaths-and-why-it-doesnt-have-to-be-a-bad-thing.html

[4] Paul Babiak and Robert Hare, Snakes in Suits. Harper Collins, 2019.

[5] Tomas Chamorro-Premuzic, Why do so Many Incompetent Men Become Leaders? Harvard Business Review Press, 2019.