Abstract
Prior research has examined the relationship between entrepreneurship and well-being, yet limited attention has been given to whether lifestyle entrepreneurship is associated with better mental health over time. There has been minimal longitudinal evidence showing whether individuals who are self-employed and seem to value non-monetary returns such as satisfaction and quality of life have different well-being outcomes than other types of self-employment. The aim of this research therefore, is to explore the relationship between lifestyle entrepreneurship and self-reported well-being, with an initial focus on mental health outcomes. The study uses data from Waves 1 to 15 of the United Kingdom Household Longitudinal Study (UKHLS), focusing on self-employed respondents. Lifestyle entrepreneurship is measured using an income-satisfaction profile categorising self-employed individuals with lower income and high job and life satisfaction. The data are analysed using descriptive comparisons, mean-difference tests, and panel fixed-effects regression models. Preliminary findings indicate that lifestyle entrepreneurs report lower psychological distress and better mental health than other self-employed respondents. Fixed-effects estimates support that when respondents are lifestyle entrepreneurs, they have better mental health over time. These findings provide initial support for the mental health dimension of the study. The proposed work-life balance mechanism has not yet been fully tested and remains part of the next stage of analysis. Overall, this study will contribute to the growing literature on lifestyle entrepreneurship by demonstrating its potential effects on well-being and providing future analysis on work-life balance mechanisms and heterogeneity among lifestyle entrepreneur types.