With mental health problems among entrepreneurs even greater than among the general population, a new study is asking founders to fill in a survey with the aim of creating solutions.
The Mindset Project is the work of Halifax-based Michael DeVenney, a chartered financial analyst, entrepreneur and consultant, and a long-time sufferer of mental illness.
DeVenney intends to analyze the survey data and create solutions such as increased training for better decision-making through resilience and stress management.
“When you’re trying to build a business, there’s so much pressure to do so many things,” said DeVenney, who is the president of consulting agency, Bluteau DeVenney.
“Working 80-90 hours a week is crazy, but it’s a badge of honour.”
He said only about four per cent of companies started each year become sustainable, growth businesses. Studies show around eight per cent of the general population experiences depression, while 33 per cent of entrepreneurs suffer depression, he said.
“This is just the cases that have been diagnosed. The evidence among entrepreneurs is largely anecdotal. My guess is the situation is actually much worse. I’m saddened by how afraid we are to talk about it and try to do something about it.”
DeVenney said some stress is caused by financial ignorance.
“I don’t think most entrepreneurs understand cash flow. . . .Most companies die from not being able to manage cash flow.”
He said there are only five academic studies on entrepreneurs’ mental health but many hundreds on entrepreneurs’ personality traits.
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The Mindset Project, which is pan-Canadian, is measuring rates of mental illness. It’s also looking at key stressors and how mental suffering impacts founders and their companies’ success.
DeVenney said the survey is anonymous, but general results will be made publicly available.
He aims to obtain 1,000 responses. That level of response would produce the largest collection of data in Canada focused specifically on entrepreneurial mental health, he said.
The team has already received 280 replies, although the project only launched at the end of last month. The survey is being disseminated and supported by seven entrepreneurs’ associations across the country.
“I’m blown away (by the response.) The survey is not short, it takes 12 minutes to fill, and respondents are also commenting in detail,” he said.
“Most of the stress revolves around people—the hiring and firing and building of teams.”
Entrepreneurs’ personalities may also cause problems.
“Entrepreneurs are typically very individualistic. They have a lot of drive and energy and that has to be balanced with working with others and reasonable expectations.”
DeVenney is especially concerned about young entrepreneurs who, along with others in their age group, experience high levels of anxiety. But, he said, young people are in touch with their feelings, which may help them cope with startup life.
DeVenney has himself suffered from depression since childhood, although he didn’t realize it for many years.
Raised in the Annapolis Valley, he studied Business Administration at Acadia University before co-founding the Bluteau DeVenney Group investment company with partner David Bluteau in 1988.
His struggles with depression later caused him to change careers, and he became a business consultant.
“I thought if I changed my business I’d be different, but I am what I am.”
He is currently taking a month off work to address a particularly severe bout of depression.
DeVenney is interested in leadership as well as finance. His many qualifications in both areas include a professional coach designation from Colorado.
He copes with his illness by seeing a therapist, exercising — he particularly advocates cycletherapy — and keeping up with friends.
“If I keep a positive mindset I do better,” he said.
He intends to form an advisory board to look at solutions when the survey is complete.
I want solutions by the end of the year,” he said. “I don’t want to do a study that sits on a shelf.”
