Startups and depression

1. Startups and
Depression
Ben Neville
Savvas Petrou

2. 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

3. 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

4. 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

5. 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”

6. 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?’

7. 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

8. 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.