The (not so) dark side of entrepreneurship: A meta‐analysis of the well‐being and performance consequences of entrepreneurial stress

Abstract Research summary Although the study of entrepreneurs' stress has encompassed nearly 40 years, the literature to date is marked by ambiguity, conflicting results, and the absence of a cohesive theoretical framework with which to describe stress phenomena. In response, the current investigation extends the challenge hindrance stressor framework to the context of entrepreneurship, testing how challenge and hindrance stressors impact entrepreneurs' well‐being and performance. Our meta‐analytic results show that challenge stressors enhance entrepreneurs' performance, but hindrance stressors harm entrepreneurs' well‐being. Additionally, comparison of our meta‐analytic results with findings on nonentrepreneurs suggests that entrepreneurs experience better outcomes from challenge and hindrance stressors than do nonentrepreneurs. Our findings have important implications for the utility of measuring and categorizing specific stressors and the value of individual‐level characteristics in coping with stressors. Managerial summary Entrepreneurs face many stressors as they start and run their ventures. However, prior research provides conflicting evidence regarding the impact of stressors on entrepreneurs and on the performance of their ventures. To address this conflicting evidence, we theorize that entrepreneurs' stressors can be categorized as either challenges (i.e., those that promote growth or mastery) or hindrances (i.e., those that promote loss or prevent mastery) and that each category of stressor differentially influences entrepreneurs' well‐being and venture performance. Using meta‐analysis, we found that challenge stressors increase performance whereas hindrance stressors had no significant effects on performance. Further, challenge stressors had no significant effects on well‐being, whereas hindrance stressors negatively affected well‐being. Finally, we identify important differences in these relationships between entrepreneurs and nonentrepreneurs.