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.