[LUM#13] My Small Business Will Weather the Crisis

[LUM Magazine] - Published on January 25, 2021 in Entrepreneurship, Science and Society

A survey of business leaders reveals that while the health crisis has increased the risk of burnout, it has paradoxically strengthened psychological traits that are critical to the well-being of executives and their companies. This process has been conceptualized by Olivier Torrès under the term “salutopreunarial capital” or “decree of the will.”

It will come as no surprise to anyone that businesses have been hit hard by the measures taken in response to the health crisis. However, the consequences are not necessarily what we expected, as demonstrated by Olivier Torrès*, an economist specializing in the well-being of business leaders and president ofthe Amarok Observatory, in a study conducted among 1,925 business leaders during the two months of lockdown.

Preventive Burnout

The first finding—which may seem paradoxical during a period marked by a halt in economic activity—is the increased risk of burnout. During the study, 34.5% of respondents were at risk, compared to 17.5% in 2019, and 9% were already considered to be in a severe stage. “We’re facing a risk of a tornado on a scale we’ve never measured before,” says the economist. “The only figures I have that exceed this are those for farmers.”

This is a puzzling phenomenon, since the study also reveals an improvement in the physical health of entrepreneurs who were able to use the lockdown as an opportunity to slow down and rest. Mental health and sleep quality, however, have deteriorated significantly due to a growing sense of helplessness and feeling trapped. “The underlying factors have changed, and we’ve shifted from burnout caused by exhaustion to burnout caused by feeling stuck,” explains Olivier Torrès.

This shift highlights “the central—if not existential—value” of work for entrepreneurs, who, over the past two months, have expressed greater concern about filing for bankruptcy than about being seriously affected by COVID-19. However, the researcher does not wish to be alarmist: “This figure is entirely linked to the lockdown. The feeling of helplessness will fade as the economy reopens.”

The "salutopreunarial" concept

An economic recovery bolstered by the study’s second, more positive finding. Indeed, while optimism is low, responses to questions regarding resilience, self-efficacy, the ability to adapt and take actions consistent with one’s values, and the desire to find meaning in one’s actions and accept their consequences indicate a marked increase in these traits among entrepreneurs during the lockdown period.

“These variables serve two essential functions for business leaders—‘problem solving’ and ‘sense making’—and constitute what I call ‘salutopreunarial capital.’ It defines a kind of declaration of will. ” The researcher found that people with high levels of this capital are not only healthier but also achieve the best entrepreneurial results. This study once again demonstrates the fundamental role that psychology can play in the economic sphere and lends credence to the famous maxim: where there’s a will, there’s a way!

*MRM (UM, University of Perpignan VIa Domitia, Montpellier Business School)

Keywords: COVID-19, Entrepreneurship, Company, LUM#13, LUM Magazine, Company, Work