The significance of entrepreneurs’ physical health for venture distress and exit

Although the entrepreneurship literature has extensively examined the mental health of entrepreneurs, there has been a notable lack of focus on entrepreneurs’ physical health. This exploratory study aims at understanding the importance of physical health issues for venture distress, in comparison to other issues, such as mental health concerns. Furthermore, it investigates the extent to which entrepreneurs faced with physical health issues are more or less likely to (in)voluntarily exit their ventures. Particularly, we examine 1752 entrepreneurs in distressed ventures in the Flemish region of Belgium over the period 2016–2019. We find that physical health issues are linked to venture distress, and entrepreneurs in distressed ventures tend to attribute venture distress more to physical rather than mental health issues. Furthermore, entrepreneurs dealing with physical health issues are much more likely to exit their ventures, often involuntarily, rather than continuing to manage them. This research provides important contributions to both the entrepreneurial health and entrepreneurial exit literatures, and practical implications for entrepreneurs, support providers and public policymakers.