Workplace mental health is a significant global concern, particularly in emerging economies like China, which often lack adequate occupational health services and regulations. While research has explored the link between entrepreneurship and mental well-being in developed nations, less is known about this relationship in emerging economies. This study addresses this gap by examining the impact of entrepreneurship on mental well-being in China, a country experiencing rapid economic growth and a high rate of entrepreneurial activity. The study draws upon self-determination theory (SDT), which emphasizes the importance of basic psychological needs (autonomy, competence, relatedness) for well-being. The researchers hypothesize that entrepreneurship, compared to wage employment, is a more self-determined career choice that fosters work autonomy and a higher subjective SES, both of which contribute to improved mental well-being. The study aims to test this model using a large-scale dataset from China, investigating both the direct effect of entrepreneurship on mental well-being and the mediating roles of work autonomy and subjective SES. The increasing number of entrepreneurs in China and the unique socio-economic context make it an important case study to understand this relationship. The study also addresses a gap in the literature by considering both work-related and SES-related psychological functioning, acknowledging that entrepreneurship can affect well-being beyond the workplace.

Existing literature has established a positive link between entrepreneurship and mental well-being, primarily focusing on developed countries. These studies highlight the mediating role of work-related psychological functioning, such as autonomy and meaningfulness. However, the literature largely overlooks the impact of SES-related psychological functioning, which is particularly relevant in emerging economies characterized by high social mobility. Entrepreneurship, as a path to wealth accumulation and upward mobility, can fulfill the intrinsic need for higher SES, a key predictor of mental well-being. This is especially true in emerging economies, where social fluidity is higher, leading to strong aspirations for upward mobility. This study integrates these perspectives by examining both work autonomy (personal psychological functioning) and subjective SES (social psychological functioning) as mediators in the relationship between entrepreneurship and mental well-being, offering a more comprehensive understanding than previous research.

The study utilizes data from seven waves (2010, 2012, 2013, 2015, 2017, 2018, and 2021) of the Chinese General Social Survey (CGSS), a nationally representative survey employing a multistage probability-proportional-to-size sampling method. The initial sample of 85,091 individuals was filtered to include only working adults aged 18-60 who were either self-employed or employed by others, resulting in a final sample of 28,419. Multiple imputation was used to address missing data. Mental well-being was measured using two dimensions: positive mental well-being (PMW), measured by self-reported life happiness, and negative mental well-being (NMW), measured by self-reported depression. Entrepreneurship was a binary variable indicating self-employment. Work autonomy was measured using a four-point Likert scale, and subjective SES (SSES) was constructed using principal component analysis of self-reported current and future social standing. Control variables included sociodemographic characteristics, objective SES measures, and health conditions. The analysis involved three steps: (1) pooled ordinary least squares (POLS) regression to examine the relationship between entrepreneurship and mental well-being; (2) Baron and Kenny (BK) and Kohler-Karlson-Holm (KHB) methods to test the mediating roles of work autonomy and SSES; and (3) instrumental variable (IV) and propensity score matching methods to address endogeneity concerns and selection bias. The marketization transition index (MTI) at the provincial level served as the instrumental variable for entrepreneurship.

POLS regression showed a significantly positive association between entrepreneurship and PMW and a significantly negative association between entrepreneurship and NMW, supporting the hypothesis that entrepreneurship has a positive impact on mental well-being. The Baron and Kenny method and the Kohler-Karlson-Holm method indicated that subjective SES, but not work autonomy, significantly mediated the relationship between entrepreneurship and mental well-being. Specifically, the indirect effects of entrepreneurship on life happiness and depression through SSES were significant (p<0.001), while the indirect effects through work autonomy were not significant. Instrumental variable regression addressed endogeneity concerns, confirming the positive effect of entrepreneurship on mental well-being. Propensity score matching using various methods (nearest neighbor, radius, kernel, local linear matching, and inverse probability weighting) further supported the robustness of the findings, showing consistent positive treatment effects of entrepreneurship on PMW and negative effects on NMW, along with positive effects on work autonomy and SSES.

The findings support the hypothesis that entrepreneurship is associated with improved mental well-being in China. However, this relationship is primarily mediated by subjective SES, suggesting that the perceived social standing and social comparison processes associated with entrepreneurship play a crucial role in determining mental health outcomes. This contrasts with previous research emphasizing the role of work autonomy. The significant role of subjective SES highlights the socio-psychological aspects of entrepreneurship and suggests that factors beyond workplace control and autonomy are important determinants of mental well-being. The study's findings have implications for occupational health research, entrepreneurial psychology, and policymaking in China and other emerging economies. The results emphasize the need for interventions that address not only work-related but also SES-related psychological factors to improve the mental health of entrepreneurs.

This study contributes to the literature by demonstrating the positive association between entrepreneurship and mental well-being in the Chinese context, highlighting the mediating role of subjective SES. The findings underscore the importance of considering both personal and social psychological functioning when studying entrepreneurship and mental health. Future research should investigate the generalizability of these findings to other emerging economies, employ longitudinal designs to establish stronger causal inferences, and use more comprehensive measures of mental well-being. Policy implications include creating supportive institutional environments for entrepreneurship and addressing factors that contribute to social and economic inequality.

The cross-sectional nature of the data limits the ability to establish causality definitively. The study's focus on China may limit the generalizability of the findings to other contexts. The use of single-item measures for PMW and NMW may introduce measurement error. Future research should address these limitations by employing longitudinal studies, expanding geographical scope, and utilizing more comprehensive measures of mental well-being.