Aging and entrepreneurs' emotional exhaustion: The role of entrepreneurial strategy, psychological capital, and felt age gap

In this paper, we draw from the theory of social and emotional aging to examine the mechanisms of age-related emotional exhaustion among entrepreneurs. Based on longitudinal data from a sample of 840 entrepreneurs in four European countries, our study shows that, with increasing biological age, entrepreneurs experience less emotional exhaustion due to their enhanced psychological capital and because they apply less entrepreneurial strategies which focus on the creation of new market opportunities and the development of new products and services. In addition, we highlight the still under-explored role of entrepreneurs' felt age gap by demonstrating that, among the same age-group, individuals who feel younger than their biological age gain well-being benefits because they possess higher levels of psychological capital and become less exhausted from the application of entrepreneurial strategies. In conclusion, our study offers two significant contributions to the literature on entrepreneurial well-being. First, we introduce the concept of the ‘Hebe Effect in entrepreneurship’, named after the Greek goddess of youth, which demonstrates how feeling younger than one's biological age acts as a buffer against stress and protects entrepreneurs from the strains of entrepreneurship. Second, we deepen understandings of how entrepreneurs' strategic choices evolve over their lifespan and influence their personal well-being. These insights also carry practical implications for aging societies that promote entrepreneurship across individuals' lifespans.

Executive summary

This study addresses a critical gap in the entrepreneurship literature on aging and well-being by examining how age influences emotional exhaustion among entrepreneurs. Despite significant research conducted on aging and entrepreneurship, studies have yet to explore the interplay between biological age, subjective age, and emotional exhaustion. Furthermore, the manner in which entrepreneurs subject themselves to, and protect themselves from, emotional exhaustion across their lifespans remains severely underexplored. This lacuna is particularly striking given global trends of increased life expectancy, the burgeoning number of older individuals engaging in entrepreneurship, and the risks posed by emotional exhaustion to entrepreneurial efforts and individuals' lives, as well as the societal costs related thereto.

By using the theory of social and emotional aging (SEA), we investigate how biological age and subjective age impact entrepreneurs' emotional exhaustion. Our longitudinal study, based on data from 840 entrepreneurs across four European countries, reveals that older entrepreneurs experience less emotional exhaustion than their younger peers. This is due to their increased psychological capital and reduced engagement in strategies focused on new market opportunities and product development. Additionally, entrepreneurs who subjectively feel younger than their biological age benefit from higher psychological capital and are less affected by the emotional strain of entrepreneurial strategies.

Our research introduces the ‘Hebe Effect in entrepreneurship’, illustrating that feeling younger than one's biological age serves as a buffer against emotional exhaustion. This effect is mediated by enhanced psychological capital and the strategic choices made by entrepreneurs as they age. By developing and testing the novel Age-Strategy-PsyCap-Exhaustion (ASPE) model, we demonstrate how biological age and felt age gap jointly influence entrepreneurs' emotional exhaustion through psychological capital and strategic choices. The study makes significant contributions to both theory and practice. The concept of the Hebe Effect in entrepreneurship provides a new lens through which to understand how subjective age can protect entrepreneurs from emotional exhaustion. Furthermore, our ASPE model offers a comprehensive framework for explicating the mechanisms through which age-related factors impact entrepreneurial well-being.

From a practical perspective, our findings suggest important policy implications for aging societies. Encouraging entrepreneurship among older adults can yield well-being benefits and enhance resilience, thus underscoring the value of an inclusive approach to entrepreneurial support. In addition, specifically tailored support mechanisms that consider both biological and subjective aging can help mitigate emotional exhaustion, thereby fostering sustainable entrepreneurial activities across all ages. In conclusion, this study advances our understanding of the complex relationship between aging and entrepreneurial well-being, offering valuable insights for both academic research and practical applications in promoting a healthy and resilient form of entrepreneurship.