William Shakespeare may have been the first one to use the term “burned out” in a psychological sense when he described a “burn’d out” love in his poem “The Passionate Pilgrim.”
But it wasn’t until 1974 when psychologist Herbert Freudenberger borrowed a term from the drug culture of the 1960s referring to someone who has used too many drugs but applying it to workers in “a state of fatigue or frustration” that the term “burned out” came into common usage.
Burnout is a real and serious issue for both entrepreneurs and executives.
According to the U.S. Chamber of Commerce, entrepreneurial burnout is a severe, chronic stress condition that affects nearly 50% of small business owners, with 87% of founders reporting anxiety, depression or burnout due to overwhelming work demands, financial worries and isolation.
Forbes magazine has referred to executive burnout as the “Silent Epidemic,” saying while many leaders appear high-functioning, 78% of executives report chronic exhaustion and 65% admit to hiding panic attacks before board meetings.
According to a recent study by Deloitte, 77% of executives have experienced burnout in their current role, with 91% saying that unmanageable stress negatively impacts the quality of their work.
The World Health Organization estimates that burnout costs the global economy $9 trillion per year in lost productivity.
A survey by Harvard Business Review found that 96% of senior leaders reported feeling burned out to some degree, with one-third describing their burnout as extreme.
Health care is particularly hard hit, with 74% of health care executives reporting extreme stress levels due to making life-or-death decisions every day. They juggle patient care with financial pressures and regulatory demands.
Right behind them are sales, media and marketing executives. Performance pressure never stops, connectivity never ends and the pace never slows down. Team leaders in these areas don’t try to recover, they just leave. Leadership team turnover exceeds 50 percent in 73 percent of those businesses.
In addition to exhaustion, burn out symptoms include cynicism, a detachment from work, increased irritability, indecisiveness and reduced professional efficacy (feeling ineffective, unproductive or that their talents are wasted).
And then there is the trickle-down effect, because burn out rarely stays contained. It will affect the entire organization with higher turnover and a drop in performance.
Key Burnout Facts & Statistics
High Prevalence: 60% of entrepreneurs are at higher risk of burnout than employees, with 23% reporting frequent burnout.
Mental Health Impact: 72% of entrepreneurs report that work-related stress has significantly impacted their mental health.
Workload: 52% of entrepreneurs work more than 50 hours per week, and 61% report higher stress levels than when they were employed.
Underreported Stress: 81% of founders do not openly share the extent of their stress, fears or challenges.
Primary Causes: Top causes include financial pressures (cash flow), too many responsibilities, long hours and social isolation.
Symptoms & Warning Signs
Physical Exhaustion: Persistent fatigue, sleep disorders, headaches and muscle pain.
Cognitive & Emotional Issues: Inability to focus, irritability, lack of creativity and feelings of being stuck.
Reduced Performance: Lower work quality and decreased dedication.
Burnout Drivers: Chasing money/status, lacking a clear business system and people management issues.
What are some healthy habits every business owner should have?
Mike Seyfer, CEO, The Institute for Human Excellence
The most important daily habit for business owners is creating small moments of intentional pause throughout the day. Leadership requires constant decision making, emotional regulation and complex problem solving, which means the mind needs regular resets to stay sharp. Simple practices – getting outside for a short walk, taking a few minutes to breathe before an important meeting, exercising regularly or protecting time for reflection – help leaders regain clarity and perspective. These habits are not about self-care as an indulgence; they are about maintaining the cognitive and emotional capacity required to lead effectively.
Christine Erickson, co-owner, Vitta Pizza
As a business owner, time is one of your biggest assets you need to protect. I have found time blocking an essential tool to make the most of my time. Time blocking allows you to schedule chunks of time for specific tasks. For example, block 9-10 a.m. each morning for responding to emails. You have one solid uninterrupted hour to get in, get it done and move on to another task. This eliminates multitasking, minimizes distractions and improves my focus.
Mike J. Waldron, Executive Director, 23rd Veteran
Two habits make a big difference: physical movement and real human connection.
Daily movement, even something as simple as a walk outside, improves blood flow to the brain and supports neurotransmitters like serotonin and dopamine that regulate mood, motivation and focus.
The other is having honest conversations with people you trust. Entrepreneurship can be isolating, and research shows that supportive, vulnerable connection increases oxytocin and helps regulate stress. It’s also important to actually receive appreciation when people offer it. Recognition and gratitude can increase serotonin levels in the brain, which helps people feel valued and emotionally balanced.
Simple habits like movement and real connection go a long way toward keeping both the mind and body healthy while leading a business.
Rick Gertsema, Senior Mental Health Advisor, ArcaMind/Miller Dwan Foundation
The most important thing anyone can do is incorporate mindfulness practices within your day. This can be as simple as doing some deep breathing or butterfly tapping (aka butterfly hug: a self-soothing, bilateral stimulation technique used to reduce anxiety and stress by crossing arms over the chest and alternately tapping the shoulders).
