ADHD Symptoms and Entrepreneurialism

Research Paper Title:

“How childhood ADHD-like symptoms predict selection into entrepreneurship and implications on entrepreneurial performance”

Authors:

Nasir Rajah (University of Leeds)
Nick Williams (University of Leeds)
Vasiliki Bamiatzi (University of Sussex)

Background:

Impulsive and hyperactive behavior associated with ADHD can be positive for entrepreneurialism and bringing a new venture to existence. However, high levels of impulsivity and inattention may contribute to negative earnings growth or business failure.

Methodology:

Sample: British Cohort Survey
Sample Size: 17,196
Method: Temporal field study using diagnostic criteria for ADHD symptoms

Hypothesis:

• Entrepreneurs exhibit higher inattention symptoms in childhood than those individuals in full-time employment

• Entrepreneurs exhibit higher hyperactivity/impulsivity symptoms in childhood than those individuals in full-time employment

• Impulsivity symptoms positively influence business survival and growth among entrepreneurs

• Inattention symptoms negatively influence business performance among entrepreneurs

Results:

1. Researchers examine the impact of distinct ADHD symptoms on entrepreneurial selection.

2. Researchers examine the impact of distinct ADHD symptoms on entrepreneurial performance.

3. Researchers find inattention to positively contribute on male entrepreneurial selection.

4. Researchers find inattention to contribute to business failure and lower take-home income.

5. Researchers show high levels of impulsivity to contribute to negative earnings growth.

Conclusion:

The researchers advance prior studies which have shown the potential benefits of ADHD traits on entrepreneurial intentions and entrepreneurial action, by further examining the underlying causes of this relationship. They do so by examining the impact of each ADHD component, as presented at the age of 10, on selection into entrepreneurship. The researchers confirm that while indeed individuals (predominantly men) diagnosed with ADHD symptoms in childhood are drawn towards entrepreneurship, this is not due to their inherent impulsive nature, but rather it is a result of the inattention component. The study also shows that whereas childhood ADHD-like symptoms may predict a positive effect on entrepreneurial selection, they also negatively impact on overall entrepreneurial performance and survival. In fact, the study finds that hyperactivity and impulsivity symptoms have discreet performance implications. Specifically, the researchers observe that high levels of inattention are conducive to business failure and lower take-home income and high levels of impulsivity lead to overall negative earnings growth. This research extends understanding of the topic of mental health and entrepreneurial performance by showing that switching from unemployment to self-employment is not always a net positive and will be influenced by the specific underlying mental conditions and traits of the entrepreneurs.