The Identity Crisis Entrepreneurs Face When Selling Their Business

For many entrepreneurs, their business isn’t just a source of income—it’s a core part of their identity. When a venture fails, the impact goes beyond financial loss; it can lead to a deep crisis of self-worth, emotional distress, and even depression.

A 2022 study highlights how failed entrepreneurs experience not just monetary setbacks but also psychological and social losses, affecting their resilience and future business ambitions (source). Similarly, a 2021 study found that the fear of failure lingers post-collapse, increasing stress and emotional pain, while personal traits like optimism or defensive pessimism shape recovery (source).

Beyond research, real-world cases show that many business owners struggle with anxiety and self-doubt after a failure. A 2023 article discusses how entrepreneurs can rebuild by reframing failure as a learning experience, prioritizing self-care, and seeking professional support (source).

The road to recovery starts with recognizing that failure is part of the entrepreneurial journey. If you’re navigating the psychological toll of business loss, Portobello Advisory can help. Our expert coaching provides the support and strategies needed to rebuild confidence, redefine your identity, and prepare for your next venture.