The Mental Health of Entrepreneurs and the Ramifications on Business Success

Date

2024

Authors

Shahin, Amira

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Zhang, Stephen
Chiu, Chad

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Abstract

This thesis examines the interplay between mental health and business performance among entrepreneurs, integrating findings from the Australian National Health Survey (NHS) and the Household, Income and Labour Dynamics in Australia (HILDA) survey. I investigate how entrepreneurial mental health impacts business income and profitability, considering factors like vigorous physical activity, biological sex, and social inclusion as moderating influences. Utilising instrumental variable analyses and fixed-effects regression models, I analyse data from over 862 solo entrepreneurs (NHS dataset) and 2,086 entrepreneurs (HILDA dataset) across an 18-year span. Furthermore, I will present two papers that have been submitted for review in respectable journals to answer my research questions. The findings from the NHS paper revealed that mental distress is associated with lower business income for Australian entrepreneurs. Notably, vigorous physical activity significantly buffered the negative relationship, suggesting that high intensity exercise may have a protective role against the cognitive declines linked to heightened distress. Additionally, findings from the HILDA paper validated these results, with entrepreneurs who have poor mental health tending to experience worse business profitability. Two moderating factors were identified to mitigate these effects, social inclusion, and gender. Female entrepreneurs and entrepreneurs with strong community ties exhibited lesser declines in their business profitability. The findings emphasise the importance of addressing the mental health of entrepreneurs and highlights the benefits of physical and social resources in moderating psychological-related declines in business outcomes.

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Adelaide Business School

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Thesis (MPhil) -- University of Adelaide, Adelaide Business School, 2024

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This electronic version is made publicly available by the University of Adelaide in accordance with its open access policy for student theses. Copyright in this thesis remains with the author. This thesis may incorporate third party material which has been used by the author pursuant to Fair Dealing exceptions. If you are the owner of any included third party copyright material you wish to be removed from this electronic version, please complete the take down form located at: http://www.adelaide.edu.au/legals

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