Study Reveals Self-Employment Linked to Elevated Stress Levels

Research from Bayes Business School, Warwick Business School, and the University of Notre Dame has revealed that self-employment is linked to significantly higher levels of stress, both perceived and physiological, than traditional employment. The study, published in the Journal of Business Venturing, utilized identical twins to control for genetic and environmental factors, providing a unique perspective on the stress associated with entrepreneurship.

Understanding the Stress of Self-Employment

The investigation involved two independent studies focusing on twins from Finland and the United States. The first study assessed stress levels using the Subjective Stress Scale among 4,164 Finnish twins, while the second examined salivary cortisol levels, a biological marker for stress, in 561 American twins. The findings indicated that self-employed individuals reported 24 percent higher stress levels compared to their twin counterparts who were not self-employed.

Furthermore, the second study demonstrated that self-employed individuals had 53 percent higher evening cortisol levels, suggesting increased physiological stress after work. This data highlights a concerning trend: while self-employment is often associated with autonomy and job satisfaction, the associated long working hours may overshadow these benefits.

The Role of Long Working Hours

Both studies underscored that long working hours significantly contribute to the heightened stress levels experienced by self-employed individuals. Interestingly, the research did not find evidence that job variety, typically thought to mitigate stress, had a substantial impact on stress outcomes. This suggests that the demands of long hours in self-employment may outweigh any potential benefits of having a diverse set of tasks.

The co-twin control methodology used in this research effectively isolated the stress effects of self-employment from genetic and shared environmental influences. This approach provides a clearer understanding of how self-employment affects stress, independent of individual predispositions to stress.

With an increasing number of individuals opting for self-employment, these findings are particularly relevant. The study calls for developing sustainable models of entrepreneurship that prioritize a healthy work-life balance and reduce the administrative burdens and workload pressures that often accompany self-employment.

In conclusion, while self-employment can offer independence and the freedom to pursue personal projects, it is crucial for potential entrepreneurs to recognize the potential stressors involved. They should assess their stress tolerance and consider strategies for managing stress effectively, such as seeking psychological support or utilizing self-help resources. The research indicates that while some stressors can be beneficial within a manageable range, chronic stress is linked to adverse health outcomes and work burnout.

As the landscape of work continues to evolve, understanding the implications of self-employment on mental health is vital for fostering a supportive environment for entrepreneurs. Future studies should explore various types of stressors that entrepreneurs face, particularly in different forms of entrepreneurship beyond traditional self-employment.

For more detailed insights, refer to the full study by Souitaris V. published in 2026 in the Journal of Business Venturing (DOI: 10.1016/j.jbusvent.2025.106556).