Coping, identity work and the dark sides of entrepreneurship: evidence from technology startups founders

Abstract

Purpose Startup founders often face the dark sides of entrepreneurship, such as limited resources, high pressure and personal strain. This study explores how technology startup founders in Central and Eastern Europe (Poland, Latvia, Bulgaria and Romania) experience and cope with these challenges. Using conservation of resources (COR) and coping theory, the paper aims to show how founders deal with stress, protect their resources and find ways to stay motivated. It also links coping with identity work, showing how founders maintain a sense of purpose under pressure. Design/methodology/approach The study is based on twelve in-depth interviews with technology startup founders from four emerging European economies. Interviews were analyzed in ATLAS.ti using both deductive coding from COR and coping theory, and inductive identification of new themes. Founders were chosen from different technology sectors and venture stages to capture varied experiences. This qualitative approach allowed a detailed understanding of how they experience stress, use different coping strategies and reshape their founder identity while managing the demands of running a startup. Findings Founders faced many forms of strain, including financial insecurity, regulation, lack of time and threats to self-esteem. They used a mix of coping strategies: problem-focused, emotion-focused and collective. Some also showed less effective coping, such as overworking and being unable to detach, which led to burnout. Beyond these strategies, identity work played a key role: by seeing themselves as resilient, flexible or visionary, founders reframed stress and found new energy. The study shows how coping and identity help sustain entrepreneurs in resource-scarce settings new insights into founder resilience in emerging economies. Originality/value This study offers new insight into how startup founders cope with adversity by identifying identity work as a distinct and powerful coping mechanism. While previous research has focused on behavioral or emotional strategies, this paper shows that redefining the self and the venture can itself serve as a vital resource that protects against loss and burnout. By integrating COR and coping theory with identity perspectives, and by examining founders in emerging European ecosystems, the study extends existing theory and deepens understanding of entrepreneurial resilience under resource scarcity.