Now you see it: using a trauma-informed lens to redirect conversations on health, human capital and entrepreneurship

Purpose Trauma occurs when an experience overwhelms an individual's normal coping mechanisms, leaving them vulnerable to physical and mental health consequences. Trauma affects a majority of the population, and some subpopulations who experience disproportionate exposure (e.g. refugees, immigrants, veterans) are increasingly nudged to become entrepreneurs. This makes trauma more likely to be associated with entrepreneurship. Data shows that traumatic experiences, recent and in the distant past, alter health in specific ways that may hinder the accumulation and utilization of human capital for entrepreneurial success. Design/methodology/approach This conceptual paper draws from trauma theory from the fields of medicine and psychology, and connects it to human capital theory. We examine this alignment in the context of entrepreneurship. Findings This paper posits that health is a foundational, yet often overlooked, aspect of entrepreneurial human capital, and that trauma exposure changes it in specific and predictable ways. Through considering how trauma manifestations in the form of hyperarousal, intrusion, and constriction (colloquially: “fight, flight, and freeze”) we explore the impact on human capital attainment and deployment by entrepreneurs. Additionally, we introduce the trauma-informed approach as an evidence-based tool to mitigate trauma's effects on functioning and success. Originality/value The paper explores how trauma manifestations in the form of hyperarousal, intrusion, and constriction (colloquially: “fight, flight, and freeze”) affect human capital attainment and deployment by entrepreneurs. It introduces a trauma-informed approach as an evidence-based tool to mitigate trauma's effects on functioning and entrepreneurial success.