Entrepreneurs experience a variety of events in their lives, such as marriage, the birth of a child, divorce, but also health shocks and deaths of relatives. Such events do not only change the lives of entrepreneurs, but likely also affect their firms. Integrating theories from literatures on the work-life interface, human life-span development, and on power and dependence, a dynamic multi-level theoretical framework is introduced that outlines the processes linking entrepreneurs’ life events and changes in firm goals and firm performance. The proposed theory also explicates the boundary conditions that influence the magnitude of firm-level changes in response to life events and explains why and how temporal patterns of change in firm-level outcomes differ across life events. The introduced theory advances a perspective of firms’ temporal embeddedness in entrepreneurs’ lives, suggesting that changes in firm goals and performance over time can mirror changes in entrepreneurs’ lives emanating from life events that entrepreneurs experience.