The Happy Entrepreneur? A Meta-Analysis of Entrepreneurship and Well-Being Considering Context

Abstract

Entrepreneurs’ wellbeing is receiving increasing attention in research and practice, but uncertainty remains whether entrepreneurs experience higher wellbeing than non-entrepreneurs, which contingencies drive potential differences. To date, theory and empirical evidence offer conflicting predictions and findings, using different indicators of wellbeing and largely ignoring the context in which the entrepreneurs are embedded. We introduce the component view of wellbeing to entrepreneurship research and theorize how the components of wellbeing (cognitive wellbeing, positive and negative affective wellbeing, stress-related mental health problems) are differently sensitive to dissonance and stressor-strain processes associated with entrepreneurship. The results of our meta-analysis comprising 251 independent samples from 96 studies indicate no differences in negative and positive affective wellbeing between entrepreneurs and non-entrepreneurs. We find that entrepreneurs are more satisfied with their work and life but also experience more stress-related mental health problems. The strength of the associations of cognitive wellbeing (satisfaction) and mental health problems with entrepreneurship is contingent upon country contexts that enable choice and trigger dissonance processes versus those that increase constraints and stress for entrepreneurs. We also find differences between opportunity and necessity entrepreneurs. In sum, our findings nuance the dominant narrative of entrepreneurship as a ‘happy occupation’.