Entrepreneurs driven by a desire for independence and creativity are significantly happier than those motivated by money or social status, according to new research from King’s College London.
The study, published in the Journal of Business Venturing, surveyed more than 3,000 founders across 18 European countries. It concludes that while entrepreneurship is often sold as a path to financial freedom, the specific values that draw people into starting a business can act as a “double-edged sword” for their mental health.
Those who prioritised “openness to change” — valuing novelty, creativity and self-direction — reported higher life satisfaction and lower psychological distress. In stark contrast, founders motivated by financial success, status, or achievement exhibited lower work engagement and higher distress.
“Entrepreneurial values act as a double-edged sword for wellbeing,” said Pierre-Jean Hanard, lead author and researcher at King’s Business School. “Values linked to independence and creativity are beneficial, while values linked to status and external rewards come at a personal cost.”
Loving local
The research also highlighted the importance of the location of a business. The team found that entrepreneurs reported greater well-being when their personal values aligned with the cultural norms of their local region.
Founders thrived in areas that supported self-direction or placed a high value on fairness and equal treatment. The study identified specific pockets of supportiveness in parts of Germany, Italy, Spain and Cyprus, noting that business culture can vary significantly even within the same country.
However, living in a status-obsessed region did not help status-driven entrepreneurs; even when their values aligned with a competitive local environment, they still suffered from poorer wellbeing.
Wealth warning
The findings serve as a warning to founders who view startups solely as a vehicle for wealth or prestige.
“Entrepreneurship allows people to express what they care about, yet some of these core motivations can be draining,” said co-author Professor Ute Stephan. “It’s important for entrepreneurs to know that what draws them into entrepreneurship may also push them towards burnout.”
The authors suggest that investors and policymakers should examine regional cultures more closely, while founders should carefully consider not only what they want to build but also where they choose to build it.
