Small Business Owners and Mental Health: A Global Perspective
Small businesses account for around 90% of all businesses, and they play a significant role in the economic growth of any country. However, despite their importance, the impact of mental health on small business owners has been largely neglected. A Xero report indicates that small business owners reported lower levels of life satisfaction compared to the general population. This is a troubling statistic, and it raises important questions about how we can promote well-being among small business owners. In this article, we explore the factors that influence small business owner well-being, how it affects businesses, and what can be done to improve the situation.
What is Well-being?
Well-being is an evaluation of an individual’s life that includes both pleasant emotions and the absence of negative ones. It is a holistic concept that encompasses one’s physical, emotional, and mental health. Small business owners face a unique set of challenges that can affect their well-being, including economic pressures, stress, and the need to balance work and personal life.
Factors that Affect Small Business Owner Well-being
Macroeconomic and Business-Related Financial Difficulties
Small business owners face various economic pressures that can impact their mental health. According to the Xero report, the difficulty in finding and retaining employees (known as “the great quit”) is a significant stressor for business owners. In addition, few owners measure success outside of financial metrics, and many lack the necessary skills to anticipate and manage financial hardship. Finally, outdated processes around financial administration and HR management, such as manually handling invoices, can be time-consuming and stressful. Businesses should consider innovating and digitally automating such processes to minimize the risk of financial hardship.
Stress Management and Mindset
The biggest stressors for small business owners involve work spilling into their personal lives and taking care of employee mental health and well-being. For instance, small business owners are more likely to contact employees outside of regular working hours or to be on call constantly, which can lead to exhaustion and burnout. Small business owners may also struggle to manage the workload of their employees, including managing leave, disputes, and performance management. To manage these stressors, businesses might consider proactive strategies such as taking time out for themselves, seeking mentorship with other business owners, and creating a positive work culture that promotes work/life balance. Additionally, formalizing company procedures around work/life boundaries can promote sustainable ways of working.
Prioritizing Recovery
Taking time to rest and recover is essential for our mental and physical health. However, many small business owners refuse to set aside regular time to disconnect from business and take scheduled vacations or sick leave. This problem is particularly prevalent in the United States. At the same time, small business owners may struggle with finding balance when they return from a break, creating an additional anxiety source. Encouraging business owners or employees to take scheduled downtime and to engage in social and physical activities can help prevent burnout and increase satisfaction.
Rewarding Work
While this factor is not among the most influential, it is still a factor that must be considered. Small business owners may not feel as though their work is rewarding, which can drain their motivation and their passion for their craft. To combat this situation, small business owners should be encouraged to find ways of rewarding themselves outside of traditional metrics of success. Communities can promote innovative approaches such as gamifying work systems, creative reward schemes, and celebrating wins as a way to create a positive work culture.
Access to Support
Lack of affordable and accessible support plagues businesses globally. Employees who may struggle with managing the demands of the job and personal lives might benefit from on-site counseling services. Owners of small businesses should prioritize creating policies that make counseling or other mental health resources more accessible. Governments or larger corporations could collaborate to provide affordable counseling or training for small businesses.
Promoting Well-being as a Means to Foster Success
Small business owners are inextricably linked to their companies. Any adversity faced by a business can directly impact on the mental health of its owners, and when considering the magnitude of this impact, it is essential that procedures be put in place to support their well-being. Small business communities around the world could benefit from increased government support and guidance, innovative policies aimed to promote mental health and well-being, and increased counseling services available for owners and employees alike.
Summary
Small business owners are the lifeblood of the global economy. However, they face unique challenges that can impact their well-being, which can ultimately affect the overall success of their business. For instance, outdated and manually handled financial or HR procedures can lead to financial hardship, stress, and burnout. Additionally, work spilling over into personal life and managing employee mental health and well-being are significant stressors. To improve one’s well-being in an inclusive work environment, business owners should prioritize promoting sustainable work and personal life schedules, incentivize employees, and reward their own hard work. Accessible mental health resources can significantly contribute to diminishing the mental health stigma, and proactive measures could lead to improved satisfaction levels and increased productivity. Ultimately, it is the job of employers and governments to foster environments in which business owners and small business employees can thrive both personally and professionally.
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What to consider to determine your level of well-being, how it’s affecting your small business, and what to do about it.
Although May concluded Mental Health Awareness Month, mental health and well-being are important topics in our daily lives. Recently, the impact of neglecting mental health and wellbeing has become more prominent. However, according to a Xero reportAn advocate for small business owners, studies on the impact of wellness on small business owners have been largely neglected.
Between November 2022 and February 2023, Xero conducted international research adapting
WHO-5 and Gallup Poll global frameworks for general population well-being to small business owners. The company identified several problems common to small business owners around the world.
This research is crucial because small businesses account for around 90% of all business, which translates into a huge impact on the well-being of society in general. This information should be leveraged when developing and implementing holistic strategies to increase the overall success of a small business.
Globally, small business owners reported lower levels of life satisfaction compared to the general population. What is behind this deficit and what can be done to remedy it?
Paraphrasing Xero, well-being implies a global evaluation of an individual’s life, including pleasant emotions with the absence of negative ones.
In the Xero study, the factors used to understand what affects owner well-being levels were:
- Macroeconomic and Business-Related Financial Difficulties:
- The ever-evolving global economic pressures and the effects of “the great quit” (ie, the difficulty in finding and retaining employees) had the greatest impact in this area.
- Xero suggests measuring success outside of financial metrics, training and upskilling to be better equipped to anticipate and manage financial hardship, and digitally automate relevant business operations around hiring.
- Stress management and mindset:
- The biggest stressors were work spilling over into personal life and managing employee mental health and well-being.
- It would be helpful to proactively seek a positive mindset, find ways to mix business time and personal time, as well as seek mentorship within the small business community on how to get to the root of and manage employee personal struggles.
- Prioritizing recovery:
- In the United States especially, small business owners refused to set aside daily or weekly time to completely disconnect from business, in addition to taking scheduled vacations or sick leave.
- Innovative solutions included teaching owners to completely unplug, engage in social and physical activities, and destigmatize licenses.
- Rewarding work: This represented one of the smaller influences on well-being, but it was still a factor.
- Access to support:
- Many small business owners cannot afford or simply do not have access to advice.
- Policies should be put in place to make advice more accessible, specifically for small business owners, and to incentivize access to it.
Your overall well-being is integral to the success of your small business. You are not alone in your challenges, and simple, strategic adjustments can make a big difference.
Join our LinkedIn group, the ALM Small Business Advisora space where small business owners can come together to network, have discussions, and stay up to date with trends and issues affecting their industries, or visit our Small Business Advisory Group On Facebook.
Brooke Yayi is a freelance writer based in Baltimore, Maryland.
Related:
Protecting the Mental Health of Insurance Respondents
Preparing for the future world of risk
6 Ways to Avoid Burnout at Work
https://www.propertycasualty360.com/2023/06/12/well-being-and-your-small-business/?amp=1
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