High inflation, general uncertainty about the future, slowing economic growth, and staff wellbeing concerns are high on the list of challenges facing the nation’s small business owners in 2023, with research out from Xero today revealing the overall wellbeing of Australian small business owners is currently below that of the general population.
Xero’s The global state of small business owner wellbeing report reveals 33% of the nation’s small business owners say their business is experiencing financial stress at least more than half the time, and 26% say managing issues related to employee mental health is a source of stress most or all of the time. The report also found that 17% of Australian small business owners say they experience financial distress most or all of the time. However, 24% say they can’t access affordable counselling and support if they need it, which is above the average of the seven countries of 21%.
In Australia small businesses make up more than 97% of all businesses.
Based on responses from more than 4,600 small business owners from November 2022 to February 2023 in seven countries — Australia, Canada, New Zealand, Singapore, South Africa, the UK and the US — the report found Australian small business owners have the second lowest overall wellbeing of the seven countries, ahead of only the UK.
According to the report, which also draws on the World Health Organisation’s Five (WHO-5) Well-Being Index framework, small business owners in countries like New Zealand and Singapore appear to be weathering the challenges better than small business owners in Australia, reporting higher levels of wellbeing and overall life satisfaction.
Xero Australia country manager Will Buckley said these insights show we need to do more to support Australian small business owners and their wellbeing.
“The stress on business owners to manage different challenges is taking its toll on individuals so we should be continually looking at ways to ease some of the burdens in order to help small businesses thrive,” he said in a statement.
“On a productivity level, we encourage small business owners to leverage technology and automate processes where possible, so they can take back time to focus on leading their business and working on other areas that they love.”
Xero is also encouraging business owners to seek professional help if they are struggling.
“Making use of resources available from great organisations like Beyond Blue who we’re proud to partner with, can enable small business owners to improve their mental health so they can continue the incredible role they play in local communities,” Buckley added.
Younger Australian small business owners under the age of 30 reported lower overall wellbeing compared to those aged over 50 included in the survey, with only South African and Singaporean small business owners reporting higher levels of wellbeing than the general population results in the 2023 World Happiness Report.
Small business owners in Australia are among the least well-rested globally, with 39% of those surveyed saying they wake up feeling refreshed and well-rested at least less than half the time.
The report comes as recent data from Beyond Blue shows the demand for its NewAccess for Small Business Owners mental health program increased by 12% in March alone, with a record-high number of treatment sessions delivered to small business owners.
Beyond Blue chief community officer Patrice O’Brien said support is out there for business owners.
“Running a business can be stressful at times and we see all too often the pressures it can put on small business owners and their families,” she said in a statement.
“For those that are struggling and in need of support, we encourage them to take advantage of services like Beyond Blue’s NewAccess for Small Business Owners program. Delivered by mental health coaches who have a small business background and understand the unique challenges facing small business owners, the program helps equip Australians with tools and healthy coping strategies to manage the everyday stressors of running a small business.”
Council of Small Business Organisations Australia chair Matthew Addison said the demands placed on small businesses have increased.
“We applaud Xero for shedding light on the pressures facing Australian small business owners, which have been compounded by years of uncertainty and an increasingly volatile operating environment,” he said.
“The demands placed on small businesses have increased significantly and it is important to understand the toll on their health and wellbeing. For small businesses to have the best chance to thrive, governments and policy makers must prioritise changes that make doing business seamless and easy, to reduce the load on small business owners.”
If you or someone you know is at risk of harm, call Lifeline now on 13 11 14
You call also contact Beyond Blue on 1300 22 4636; Headspace on 1800 650 890; or The Suicide Call Back Service on 1300 659 467.
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