The Silent Struggle of Entrepreneurship

In our recent interview with Kennedy Hardinge, President of the Entrepreneur Mental Health Association, it really highlighted a subject that rarely gets a light shone on it.  For this month’s blog, here at the Cambiara Group, we’d going to shine that light even more. 

Entrepreneurship in Canada is often celebrated for its innovation and resilience. However, beneath the surface lies a pressing issue: the mental health challenges faced by entrepreneurs. Recent studies reveal that a significant number of Canadian business owners grapple with mental health concerns, often in silence.

The Mental Health Landscape for Entrepreneurs

According to a 2023 survey by the Business Development Bank of Canada (BDC), 45% of Canadian entrepreneurs reported experiencing mental health challenges weekly, up from 38% in 2022. These challenges are not isolated incidents but reflect a broader trend affecting the entrepreneurial community.

Further emphasizing the severity, a study by the Canadian Mental Health Association (CMHA) found that 62% of business owners feel depressed at least once a week. Notably, women entrepreneurs, those in the early stages of business, and owners of smaller enterprises reported higher levels of mental health issues

Key Stressors for Canadian Entrepreneurs Today

Several factors contribute to the mental health struggles of entrepreneurs:

• ·Inflation and Financial Strain: High prices remain a top worry. In BDC’s 024 survey, 48% of entrepreneurs cited inflation as a major stressor.  Relatedly, 46% listed difficulty maintaining cash flow or profitability. Cost pressures force many to work longer or postpone plans. A CFIB report notes “staffing challenges cause employers to work more hours” as they struggle with costs and revenue gaps.. Earlier research also showed 67% of entrepreneurs were stressed about cash flow.. In short, rising costs and tight finances leave many business owners anxious about survival.

• Interest Rates and Debt: Nearly 38% of entrepreneurs report high interest rates as a stressor. CFIB analysts note that elevated rates “limit sales and increase pressure on business financing”. Post‑pandemic debt burdens compound the problem: about 30% of hospitality and social‑services SMEs still carry debt (averaging ~$65K each). Such debts and borrowing costs add to entrepreneurs’ economic anxieties.

• Cash-Flow & Profitability: Maintaining liquidity is a constant worry. BDC found 46% of entrepreneurs stressed by cash‐flow or profitability issues. This echoes earlier findings (e.g. 67% stressed about cash flow in a 2021 survey.). When sales slow or costs rise, owners often skip vacations and work extra hours, which further erodes well‑being.

• Regulatory and Administrative Burden: Government red tape is a major frustration. In CFIB’s 2024 study, 88% of small‑business owners agreed that “excessive government regulations add significant stress” to their lives (55% strongly agree, 33% somewhat). About 68% even say the current regulatory burden would discourage them (or the next generation) from starting a business.  Compliance costs (paperwork, permits, taxes) effectively lengthen workdays and cut into personal time. Smaller firms feel this most acutely: CFIB estimates a 0–4 employee business spends ~$10,200 per employee on regulation annually, mostly in owner wage costs.

Work-Life Balance and Social Stressors

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• Work/Life Imbalance: By far the most-cited stressor is work‑life conflict. BDC reports 51% of entrepreneurs identify poor work/life balance as their biggest stress factor.. Long hours, blurred boundaries and constant on-call demands wear on founders. A 2021 CMHA/BDC study found 66% of entrepreneurs had trouble maintaining balance due to stress. Nearly half work every day despite mental strain. Many skip downtime: in 2024, only 35–44% reported using exercise or vacations to cope. Without breaks, anxiety and fatigue accumulate. 

  
  

• Isolation and Loneliness: Running a business can be lonely. In surveys about entrepreneurs’ stress, 25–27% report loneliness/isolation as a source of stress. Working without peers or support adds pressure. In qualitative accounts, owners describe feeling “overwhelmed” and “completely burnt out” by carrying the business on their own. This sense of isolation, combined with always-on connectivity, contributes to burnout.

• Digital Burnout: Many entrepreneurs (especially in tech or online businesses) face “digital burnout” from constant connectivity – endless emails, social media marketing and remote meetings. Though hard data is scarce, observers note that being “always plugged in” blurs rest time and increases exhaustion. (A 2023 Logic Media survey of businesspeople found 80% felt stressed or burned out, reflecting the toll of our 24/7 digital economy.) Such digital overload can heighten anxiety and reduce sleep, further straining mental health.

Demographic and Business Differences

• Gender: Women founders report higher stress levels. In BDC’s 2024 survey, 32% of women entrepreneurs were dissatisfied with their mental health (vs ~24% overall). Women were also more likely to seek professional help.. Similarly, a 2021 study noted female entrepreneurs felt “uncertainty and inadequacy” and depressed mood more frequently than men. This may reflect balancing business with caregiving roles, or greater stigma in admitting struggles.

• ·Age and Business Maturity: Younger entrepreneurs tend to suffer more but are also more proactive. BDC found owners of “younger” businesses and owners under 45 years had worse mental health: ~38% of those under 35 reported dissatisfaction. In 2023, 50% of entrepreneurs under 45 had sought mental health support in the past year, vs only 25% of older owners. (By contrast, older owners may be less likely to admit problems.) Similarly, “startup” firms (<2 years old) carry heavier financial stress and tend to worry more than mature businesses.

• Business Size: Smaller businesses experience more strain. Entrepreneurs with fewer than 10 employees report stress and mental health concerns at higher rates than those with larger staffs. (They wear many hats with less resource backup.) In fact, CMHA/BDC research showed that under-10 firms were significantly more likely to report stress and mental-health issues than bigger companies. Interestingly, BDC also noted that owners of larger businesses were more likely to seek professional help, suggesting small‑business owners may struggle in silence.

• Sector/Industry: Pressures vary by industry. For example, hospitality and social‑service operators remain burdened by pandemic debt – about 30% carry large loans (~$65K on average) from COVID. Manufacturers and retailers cite rising input costs and supply-chain snags. Construction firms, in particular, lost an estimated $9.6 billion in business in one year because of labour shortages. Such sector-specific stresses – from fluctuating demand to regulatory compliance – color the mental health picture.

Barriers to Seeking Help

Despite the prevalence of mental health issues, many entrepreneurs hesitate to seek professional help. Only about one-third of those experiencing challenges reach out for support. Barriers include cost, uncertainty about available services, lack of awareness, and stigma associated with mental health.

Moving Forward: Addressing the Crisis

Overall, the picture is clear: Canadian entrepreneurs face a complex web of economic, operational and personal stressors. Work-life imbalance tops the list, alongside financial and regulatory pressures. 

Younger, female and small‑business owners tend to report worse mental health, and sectors like hospitality and construction see unique burdens. According to BDC, about 24% of entrepreneurs rate their mental health as “not doing well”, and 40% say it interferes with work. Addressing these challenges – through better work/life supports, affordable counselling and less red tape – is critical to sustaining Canada’s business community.

Recognizing the mental health challenges faced by entrepreneurs is the first step toward meaningful change. Organizations like BDC and CMHA are working to provide resources and support. However, a collective effort is needed to destigmatize mental health issues and ensure entrepreneurs have access to the help they need.

By fostering open conversations and providing accessible resources, we can support the well-being of Canadian entrepreneurs, ensuring they continue to drive innovation and economic growth.

Cambiara Group – May 2025