Living

The entrepreneur’s guide to thriving, not just surviving

a trauma-informed approach to wellbeing in digital entrepreneurship

Danielle Smeltzer headshot
Danielle SmeltzerSeptember 7, 2025

Why read this: Learn how trauma-informed leadership creates psychological safety, prevents burnout, and unlocks innovation in digital entrepreneurship teams.

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Key Takeaways

Fear-based leadership kills innovation

Leading through control and urgency gets short-term compliance but destroys the trust and psychological safety needed for real creativity and long-term success.

Your nervous system affects your team

When leaders operate from survival mode, it creates cultures of micromanagement, burnout, and disengagement that spread throughout the organization.

Well-being is a business imperative

Creating psychological safety isn't soft—it's what allows teams to take creative risks, give honest feedback, and innovate freely in high-pressure environments.

I’ve seen it firsthand: cultures driven by urgency, teams walking on edge and founders pushed past their limits in the name of growth. Because in reality, driving through fear and chasing the latest shiny object only gets you so far.

Sure, you get some short-term wins to satisfy VC boards. But if your body is bracing for impact when the CEO’s footsteps echo down the hall or you’ve got innovation paralysis—plenty of ideas but unable to implement them—then the cost becomes clear.

Build workplaces where people can thrive

A healthy workplace doesn’t mean the absence of pressure—it means people know how to move through it together. It looks like a team where psychological safety is baked into the culture: leaders normalize vulnerability by naming their limits, team members feel safe to say “I need help” without fear of consequence and performance reviews consider how you show up, not just what you produce. Conflict is addressed early and directly, not left to fester. Recovery is prioritized alongside output. There’s clarity around expectations, space for reflection and permission to pause.

Well-being, through a trauma-informed lens, isn’t a perk or luxury. It’s a business imperative.It means cultivating a nervous system state where safety, regulation and resilience allow people to show up as their full, authentic selves—able to navigate pressure without being hijacked by reactive patterns and to lead with clarity and compassion.

It’s about creating environments where the whole human experience is honored, not ignored. 

This is especially critical in the always-on culture of digital entrepreneurship, where blurred boundaries and performance pressure can erode creativity, trust and innovation.

In this article, you’ll learn how trauma-informed leadership unlocks creativity, mitigates burnout and builds a culture where innovation thrives.

Change the way we work

As both a founder and a people and business operations executive, I work at the intersection of leadership, culture and capacity building—supporting teams through high growth, high stress and high stakes.

I see what happens when fear-based leadership dominates.

Creativity flattens, trust deteriorates and people start to disappear—sometimes emotionally. Sometimes literally, where one day they’re either exited abruptly or they have no choice but to make the call themselves and resign.

That’s why I founded Awarely Embodied Leadership. I support digital entrepreneurs and leaders in building differently through trauma-informed leadership, somatic intelligence and values-aligned strategy, grounded in training from Somatic Experiencing, health coaching and "Dare to Lead" by Brené Brown.

But real change starts with us—by building awareness, naming what we’ve normalized and holding ourselves accountable for the patterns we carry. That’s not easy. Often, the very traits that got us to the top—relentless drive, control, self-sacrifice—are the ones that quietly erode trust and sustainability.

Unlearning them can feel uncomfortable, even threatening. But it’s this kind of honest reflection that opens the door to healthier leadership and lasting impact.

Here’s what I’ve learned about how we can lead and scale in a way that doesn’t replicate harm but instead creates space for real transformation, sustainability and well-being.

Break fear-based patterns to unlock innovation

There’s a myth in tech and digital entrepreneurship that fear-based leadership gets results. And in the short term, that can be true. So what happens when fear, rather than clarity, drives leadership? Let’s start with the cost

I’ve worked inside companies where urgency and dominance were mistaken for effectiveness. It certainly got those companies results: record-breaking quarters, industry praise and thrilled shareholders.

But behind those numbers was a team operating in constant survival mode. Brilliant people second-guessing themselves. Constant turnover. Deep disengagement.

When you lead through fear, you may get compliance but you’ll never get commitment.

And over time, you lose the very thing that makes innovation possible: trust.

In those environments, I see how quickly the nervous system adapts to survive. Leaders micromanage because they don’t feel safe. Teams over-perform to avoid criticism. Burnout becomes the norm.But what if instead of defaulting to deeply ingrained patterns of micromanaging and control as the only way to lead, we stopped and asked ourselves (and each other) if there’s another path to get the same result.

It wasn’t until I began integrating trauma-informed leadership principles—starting with myself—that I saw the possibility for a different way. A way where regulation, relational trust and clear boundaries become the foundation of culture, not the afterthought.

Use simple practices to shift from burnout to capacity

Fear-based leadership doesn’t just harm culture. It depletes capacity.

As an executive working alongside founders scaling startups, I carried those same patterns with me.

I over-functioned.

I confused control with clarity.

I prided myself on being the one who could “handle it all,” jumping in to solve every problem before it landed. I thought I was being helpful—but in reality, I was modeling unsustainable behavior, disempowering my team and running on fumes. I wasn’t leading—I was managing chaos with a polished face. It took slowing down and getting honest with myself to see that what looked like strength was often just fear in disguise.

And like many entrepreneurs, I reached a breaking point—realizing that success built on self-abandonment wasn’t sustainable.

My turning point came through Somatic Experiencing—a body-based approach to healing trauma and restoring regulation. I learned that many of my leadership "strengths" were actually survival responses: People-pleasing was fawning. Hustle was hyperarousal. Shutting down was freeze.

Now I help founders and leaders:

  • Recognize when they’re leading from dysregulation.
  • Interrupt stress cycles before burnout takes over.
  • Design systems of work that reflect what they value and how they want to feel in their business.

If you’re not sure where to begin, get curious about what resources you already have. Before your next difficult meeting or challenging conversation, use your sense to get grounded. For example, you can explore a space with your sense of sight.

Take a look around the space you’re in and let your eyes land on anything that draws your attention. Notice the textures and colors and any shifts in sensations in the body. From there, start to use this in the context of those tough moments. Tip: Before a tough meeting or conversation, try this 30-second reset:

Look around your space. Let your eyes land on something neutral or pleasant—a color, texture, or object.Pause and notice. What happens in your body? Even a small shift (like a deeper breath) is useful.

This simple visual check-in helps ground your nervous system so you can show up with more clarity and calm—no extra time or tools needed.

Create conditions for safety, not just results

Here’s the truth we often ignore in high-growth environments: You can’t create innovation in a space where people don’t feel safe.

Psychological safety isn’t just an HR buzzword—it’s a nervous system reality. And as leaders, our job isn’t just to drive outcomes. It’s to create containers where people feel seen, heard and supported enough to bring more of their full selves to work.

Inside the organizations I work with, the shift begins when leadership starts listening differently.

When performance reviews include space for honesty.

When meetings allow for respectful disagreement.

When decisions are made from presence, not panic.

My work supports founders and executives in building these kinds of cultures where human experience is not an inconvenience, it’s a resource.

Because when people feel safe, they:

  • Take more creative risks
  • Offer more honest feedback
  • Stay longer, engage deeper and innovate more freely

You don’t need fear to drive performance. You need connection, clarity and care.

Tip: Name it to navigate it

When things feel hard or unclear, take a simple first step: name what’s happening.Acknowledge that it’s challenging, be honest about what you don’t know, and ask for help to move forward.

This builds clarity, trust and momentum—especially when you're under pressure.

Address power dynamics to create real equity

We can’t talk about well-being in the workplace without talking about power—and we can’t talk about power without acknowledging the gendered dynamics that still shape how leadership is expected to look, sound and behave.

Leadership doesn’t happen in a vacuum. It operates within systems—systems that still reward dominance, decisiveness and speed, often coded as masculine. These norms are embedded in how decisions are made, whose voices are heard and whose labor is expected without acknowledgment.

As a woman in tech and entrepreneurship, I’ve often been praised for being “the adult in the room,” the one who regulates the emotional temperature, calms the chaos and brings people together under pressure.

It’s framed as a strength but let’s call it what it often is: emotional labor repackaged as leadership, quietly expected of women and those with marginalized identities.

I’ve watched male peers get celebrated for sharp edges and strong opinions, while I was expected to soften the blow, mediate tension and keep the team “feeling good.” I’ve been positioned as the bridge, responsible for culture but without any structural power or recognition to match that role.

This isn’t just my story. It’s a pattern many underrepresented leaders face, especially in digital and tech spaces where the demand to perform is high and the room to feel is low.

If trauma-informed leadership is to be truly effective it must be gender-conscious, equity-rooted and willing to question who holds what kind of power and why.

That means:

  • Recognizing emotional intelligence as a leadership capacity, not an unpaid tax on women or marginalized folks.
  • Redistributing responsibility for culture, so it’s not just held by those with the least positional power.
  • Challenging urgency and dominance as default modes and instead valuing sustainability, reflection and shared accountability.

When we lead this way, well-being stops being a side conversation and starts becoming a lever for deeper change. It challenges the norms of urgency, individualism and dominance that many traditional business systems are built on—and invites new ways of working that center care, collaboration and sustainability.

That shift affects who gets heard, how power is shared, and the kind of culture we create.

That’s where transformation begins. And from there, innovation, trust and humanity can truly take root.

Start integrating trauma-informed leadership

These aren’t abstract principles—they show up in everyday decisions. But you don’t need a complete overhaul to get started. Here are some simple but powerful ways to begin shifting your leadership from survival mode to sustainable innovation.

  • Practice holding space. When someone shares something hard, resist the urge to fix it. Just witness. Let them feel seen and safe without your solution.
  • Take a pause before reacting. Especially when the pressure is high. Slowing down helps you respond with intention, not impulse.
  • Get curious about reactions. Strong reactions — yours or someone else’s — often point to something deeper. Ask: What’s the story under the story?
  • Lead with how you want to feel. Build systems and rhythms that support well-being for your team and your nervous system.

Trauma-informed leadership isn’t about softening the edges. It’s about leading with greater discernment, awareness and integrity in a world that desperately needs it.

Final thoughts: lead for the long term, build for well-being and stand with tech for good

In digital entrepreneurship, it’s easy to chase the shiny wins—user growth, funding rounds and viral launches.

But real leadership isn’t about reacting to the loudest metric. It’s about building for the long haul.

And that requires something often dismissed as “soft”: well-being.

Well-being isn’t about perks or personal wellness routines, it’s a business imperative. Through a trauma-informed lens, it’s the ongoing practice of creating the internal and external conditions where people—starting with you—can feel safe enough to take risks, recover and re-engage.

It’s what allows your nervous system to lead from clarity, not chaos. It’s what fuels the kind of creativity, trust and resilience that no growth strategy alone can replicate.

Choosing well-being as a leadership value is a radical act in a culture that rewards speed over sustainability. But if we want to build digital businesses that don’t replicate harm—if we want to stand on the side of tech for good, not just tech for gain—then we have to lead differently.

That means:

  • Designing business practices that support, not deplete, human energy
  • Creating cultures where people are safe to bring ideas, mistakes and full identities
  • Rejecting urgency culture in favor of thoughtful, ethical, nervous system-aware growth

The future of digital entrepreneurship depends on our capacity to reimagine success, not just by what we build, but by how we build it and who is well enough to stay.

So the question isn’t whether well-being belongs in business. It’s whether we can afford to build without it.

Because thriving teams build thriving technology. And the businesses that last won’t just survive the noise—they’ll shape what comes next, with clarity, integrity and care.

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Danielle Smeltzer headshot
Danielle Smeltzer

Danielle Smeltzer is an advocate for trauma-informed leadership and progressive workplace well-being. As the founder of Awarely Embodied Leadership, she's on a mission to help high-performing women reclaim their well-being as they rise, while challenging organizations to consider more sustainable paths to growth.