Risk of burnout in French entrepreneurs during the COVID-19 crisis

Abstract

The COVID-19 crisis presents manifest threats for entrepreneurs since their business survival is often directly at stake given the alarming economic downturn. This existential threat, together with their crucial role in the economy, is the reason for the plethora of public financial support schemes being implemented throughout the entire world. However, support schemes for mental health are lacking. We aim to investigate, first, whether burnout levels have increased during the crisis and, second, whether burnout levels during the COVID-19 crisis depend on the threat of becoming ill, having to stay at home due to the lockdown, and/or having to file for bankruptcy due to the economic downturn. We do so using seven data sets of French entrepreneurs with a temporal comparison of averages and two data sets of French entrepreneurs with a cross-sectional analysis of individuals. Our findings show that indeed, the risks of burnout have increased during the pandemic and that the threat of bankruptcy is the dominant threat. As an increasing number of studies in the entrepreneurship literature indicate that entrepreneurs’ mental health influences their activities, as well as the growth and sustainability of their ventures, our study is important and timely in its contribution, as it takes a close look at the perception of burnout in general and more specifically during the COVID-19 pandemic.Plain English SummaryThe risk of burnout in French entrepreneurs has increased significantly during the COVID-19 pandemic, which calls for not only financial support but also other forms of support. The COVID-19 pandemic presents many threats for entrepreneurs since their business survival is often directly at stake. These threats are not just financial but also related to health, such as the threat of burnout. The findings of our study show that for French entrepreneurs, the threat of burnout increased after the arrival of the COVID-19 pandemic. This finding raises the question whether this outcome is due to the threat to health, the effects of the lockdown, or the threat of bankruptcy. It appears that all three factors play important roles, although the financial threat is the dominant threat. These findings call for the extension of entrepreneurial support systems beyond the financial area by also involving an “entrepreneurship care” aspect, which includes telephone support, webinars, and mental help facilities.