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Isolated at the top

The positive aspects of being an entrepreneur are well-known and celebrated. You are in control of your destiny can effect real change; you call the shots and you earn (potentially) very good money. It is a singular position to be in.

However, this singularity also brings problems. Entrepreneurs often feel an immense burden of responsibility and that they alone can make certain decisions: all roads lead to them. Worse still, being at the top of the organisational pyramid means they have no direct peers, and they may feel that other stakeholders cannot offer them advice free of conflicts of interest.  

It's very difficult to find people who will speak truth to power

says Edith Ang, HSBC’s Head of Family Advisory, Asia Pacific.

Tied into this is the entrepreneurial belief in their own irreplaceability – they often see themselves as the only person who can lead the company. As Russell Prior, Regional Head of Family Governance, Family Office Advisory & Philanthropy, EMEA, HSBC Global Private Banking says, “There’s a real feeling that the buck stops with me.” Prior adds that this can be a particular problem for the sort of mid-sized businesses which are neither small enough to feel like one single team nor big enough to have put formal support structures in place.

The combination of a heavy burden and nobody to share it with can be intensely isolating – and may affect everything from entrepreneurs’ business performance and mental health to their relationships with family and friends.

Data from our global entrepreneurs report which was undertaken with Ipsos supports this. Forty-four percent of entrepreneurs said that it can or could feel lonely being a business owner. This figure is slightly higher amongst single business owners (46%) as opposed to multi-business owners (38%) and rises among entrepreneurs over 35 (48% as opposed to 37%). Moreover, 24% of respondents say the weight of responsibility is a key business challenge.

If entrepreneurs feel isolated at work, they often feel they can’t turn to their families either. There are two distinct strands here. One is that immediate families – such as spouses and children - may not understand business issues. The other is that, if they are next-gen entrepreneurs, owner-managers may not feel they can ask the older generation for help and advice (even if their elders do understand the business). Forty three percent of entrepreneurs agreed or tended to agree with the statement, “I find it hard to ask for support from older generations in my family.” Prior notes that “the parent-child relationship never really goes away, even if the parent is 80.”

So what can they do? The board may be a place to start. “For some people,” says Prior, “it can be about having a non executive director on the board – for example, appointing a non executive chairman.” However, he adds, “You need to make sure that that the there’s sufficient separation and objectivity around the way those roles are positioned.” Fail to do so and you just have another stakeholder who cannot be relied upon to speak their mind.

But non-executives are still inside the business. Another way is to look at finding ways to open up to your family, whether it’s a partner or a member of the older generation. Although we see that 30% of current entrepreneurs perceive talking to family as a bigger concern when it comes to planning their business after they exit, most former entrepreneurs expressed that it was one of the smallest issues they faced (20%).

of entrepreneurs state global networks are integral to doing successful business.

Alternatively, two of the very best ways of combating entrepreneurial isolation are through mentors and peer networks - 82% of entrepreneurs said having a good business mentor is/was essential (former entrepreneurs can often fulfil this role) while 81% of entrepreneurs state global networks are integral to doing successful business. Ang says, “Unless you have walked that same road, it's very, very tough to empathise, even if they want to. Peer groups are vital. There may be others who have encountered the same challenges and can share best practises and experiences. Having a safe place to share these issues helps entrepreneurs feel less alone.”

Interestingly, peer support varies significantly by industry. Those in IT and tech are more likely to have a peer group they can go for advice or support. In other sectors, such as finance it is harder. Ang says, “This may be partly because it’s a relatively new industry. Everyone is starting out on the same foot, so there is a sense that you’re creating the industry together, whereas with more established industries, pathways are much more established and barriers to entry are higher.”

She adds that, regardless of industry, while many entrepreneurs cultivate an image of heroic self-reliance, they genuinely want someone who can hold a mirror up to them and offer them intelligent criticism and listen to their worries. 

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