A recently conducted study revealed that nearly half of participants in India's startup ecosystem report low levels of well-being, with employees being the most vulnerable group. According to the 'State of Mind: The Startup Ecosystem' report, attention to founder burnout often overshadows the issue of employee well-being.
The study, initiated by Sheetal Bal, founder and partner at Merak Ventures, and prepared by Priyanka Kartari, Dr. Sukmani Pal, and Dr. Dilip Pannikram, surveyed 1040 individuals, including founders, employees, investors, and ecosystem supporters. A final analysis included 823 respondents.
The results showed that 54.3% of employees reached or fell below the well-being threshold, compared to 45.2% of investors, 44.2% of ecosystem supporters, and 42.9% of founders.
Psychological safety emerged as the strongest correlation with well-being levels. Approximately 34.8% of respondents stated they did not feel safe discussing their workplace difficulties. Those who felt free to speak had an average WHO-5 well-being score of 60, whereas among those who did not feel safe, this score was 39.5.
This gap was even more pronounced among employees: 88.3% of employees who did not feel safe were at or below the well-being threshold, while this percentage was 26.7% among those who felt safe.
A significant number of people may not even realize they are struggling. Of the 391 respondents who scored low on well-being, 35.3% described themselves as thriving or coping. Only 15.1% of this group reported seeking professional help.
The study also established a clear link between increased working hours and decreased well-being. Among those working less than 40 hours per week, 37% were at or below the well-being threshold. This figure rose to 43% among those working 40–50 hours, and to 51% among those working over 50 hours per week.
Interestingly, founders reported the highest levels of anxiety but simultaneously demonstrated high energy and engagement. In contrast, employees reported lower levels of energy, interest, and engagement without a corresponding rise in anxiety, which the report suggests might be mistakenly perceived as low motivation.
Sheetal Bal noted that while many ecosystem participants are not surprised by how things are, this study highlights certain nuances: despite alarming results across all groups, employees bear the greatest burden of stress. He added that 'the positive point is that solutions are not complex science—make it safe for people to speak, provide them support, and allow real time off, and well-being will improve sharply.'
The report recommends conducting regular anonymous well-being checks, training managers, providing confidential support, and allocating protected time for rest. It also suggests that investors should incorporate well-being questions into their due diligence and fund well-being programs for companies in their portfolio.
In conclusion, the report warns that the data reflects patterns rather than proof and does not establish clinical diagnoses. The study used an adapted version of the WHO-5 Well-Being Index, and the adaptation threshold has not undergone independent validation.