Founders who leave corporate jobs to start their own ventures face a significant spike in biological stress that genetics cannot buffer, according to new research published in the Journal of Business Venturing.
A study led by Bayes Business School at City St George’s, University of London, analysed data from more than 2,000 sets of identical twins. By comparing siblings with shared DNA and upbringings — effectively controlling for “resilient” personality traits — researchers isolated the specific impact of career choice on well-being.
The results challenge the romanticised view of the autonomous entrepreneur. Workers who transitioned to self-employment reported, on average, 24 per cent higher stress levels over a six-year period compared to their employed twins.
The cortisol gap
Biological indicators painted an even starker picture. The researchers measured daily cortisol levels, a hormone that regulates the body’s response to stress.
Under normal conditions, cortisol peaks upon waking and drops throughout the day. However, the study found that self-employed individuals maintained elevated levels of the hormone for longer. By bedtime, their cortisol levels were, on average, 53 per cent higher than those of their salaried identical twins.
“Our research suggests that even those who are preconditioned to thrive in this environment experience higher stress over time than counterparts working in an organisation,” says Vangelis Souitaris, Professor of Entrepreneurship at Bayes. “Even though variety is a major attraction to self-employment, it does not appear to make life any less stressful.”
Autonomy vs. exhaustion
The study identified a critical trade-off: while founders enjoy greater control over their tasks, the sheer volume of work negates the mental health benefits of that freedom. The data showed that longer working hours were directly associated with increased stress, outweighing any “gains” from increased work variety.
The authors advise that founders must move quickly to delegate tasks rather than trying to act as a “hero” founder.
“Business owners must ensure that they set boundaries to avoid burnout and manage their time effectively,” says Souitaris. “Seeking automation, outsourcing and personnel at an early stage can also help alleviate health problems and achieve success.”
