Australian SME owners report ‘stable’ mental wellbeing

New research from MYOB has revealed that one in two small business owners believe running a business has positively impacted their mental health.

The latest version of the MYOB Bi-Annual Business Monitor highlighted a link between running a business and emotional health, as respondents rated their mental wellbeing a 6.8 out of 10.

MYOB said this rating was an ongoing improvement from 6.7 in January 2023 and 6.5 in January 2022.

The survey was made up of 1087 respondents, all of whom were SME owners and operators, and found that 52 per cent agreed that running their own business had been beneficial to their mental health, through increased flexibility and work/life balance.

Despite many having reported a positive impact on their mental health, the survey revealed business owners were still concerned about mental health challenges they faced.

Stress was noted to be the most common mental health-related challenge, with 43 per cent of respondents having indicated that running a business had inflicted significant levels of stress over the last year.

This was followed by anxiety being reported as a common mental health challenge, with 35 per cent reporting it as a concern.

In terms of business-related challenges, cash flow was noted to be the leading cause of mental health struggles, with 41 per cent having cited it as a key issue.

Other top business challenges cited to impact the mental wellbeing to remain familiar to small business owners included attracting and retaining customers, and not having enough family time.

Sally Elson, MYOB chief people officer, said the MYOB Bi-Annual Business Monitor had tracked SME wellbeing since 2019, which offered insights into the evolving mental health landscape of Australia’s small business community.

“The findings of this edition of the MYOB Bi-Annual Business Monitor survey are a testament to the fortitude of Australia’s SME community, while also serving as a critical reminder of the challenges many business owners face,” she said.

“While it’s encouraging to see many owners embracing the flexibility and balance, being their own boss can offer stress, anxiety and financial pressures clearly weigh on them. Australian SMEs are a significant part of our economic ecosystem, and it’s vital they have access to resources and initiatives to safeguard both their businesses and wellbeing.”