Running a small business in the past year has taken a toll on the entrepreneurs. According to a CapitalOne 2022 report, nearly half (42%) of small business owners say they have experienced burnout in the past month, with 24% saying they are currently experiencing burnout, a syndrome resulting from chronic stress at work that is characterized by overwhelming exhaustion, negative attitudes, or a lack of commitment with clients and dissatisfaction with job performance.
Given the challenges small business owners have had to face over the last few years, according to self-reported survey results, running a business during this time period has taken a personal toll. Twenty-four percent of small business owners say they are experiencing burnout, up from 20% in December 2021. Gen-Z (38%) and Millennial (30%) small business owners, and dealership owners (41%) are the most likely to say they are currently experiencing burnout. In addition to burnout, most small business owners feel like they are achieving less than they should (62%), feel run down and drained of physical or emotional energy (60%), do not feel support from the government as a small business (58%), and are constantly worried about their business’ finances (57%).
And this isn't limited to just US small business owners. Canadian entrepreneurs’ mental health has declined “significantly” over the past year amid rising costs and poor work-life balance, suggests a new report by the Business Development Bank of Canada.
The Crown corporation’s survey of some 1,500 small business owners found roughly 45 per cent of respondents reported feeling mental health challenges at least weekly, up seven percentage points from the previous year.
Xero, a leader in cloud accounting across New Zealand, Australia, and the United Kingdom identified five key factors that might influence the overall well-being and life satisfaction of small business owners:
Macroeconomic and business-related financial distress: The state of the national and global economy tends to impact small business owner well-being, as does the frequency of financial distress small business owners face.
Stress management and mindset: Business issues causing stress in small business owners’ personal lives seems to affect overall life satisfaction to an extent. Cheerful, calm, and active mindsets tend to contribute significantly to small business owners’ well-being.
Prioritizing recovery: When small business owners feel rested and free to take time off when needed, their broader well-being generally benefits.
Fulfilling work: While most small business owners derive some level of fulfillment from their work, those who find their daily activities interesting or mentally stimulating may be more likely to experience better overall well-being.
Accessing support: Affordable counseling and support remain relatively inaccessible to small business owners - which could amplify risks to well-being during times of macroeconomic adversity and personal crisis
While a majority plan for short- or long-term organizational goals, almost four-in-ten businesses with 50 employees or less report not planning for either. Smaller businesses are more likely to say that they do not currently outline short- or long-term goals for their organization (38%) than larger organizations (8%). This percentage grows the smaller the business, with half of those who are the sole employee in their business and over a third (37%) of those with one to four employees reporting they do not outline goals. When thinking about organizational priorities, small business owners consider profit the top metric of success (23%), closely followed by customer satisfaction (21%).
The lack of planning short and long-term goals potentially adds to the daily stress and burnout for entrepreneurs as they lack the benchmarking to understand if they are making the progress they hope to achieve. Essentially, running a never-ending marathon racing against opponents with an unknown position. Run faster in the hopes of winning without ever knowing if they are closer to their goal or where they are benchmarked within their segment.
The pressures of entrepreneurship can weigh heavily on your mental health, leading to increased stress, anxiety, burnout, and depression. You need to recognize the signs and take steps to prioritize your mental well-being. By caring for your mental health, you can improve your work performance, avoid burnout, and live a healthy and happy life. As a business owner, you are the driving force behind your success, and by tending to your mental health, you can ensure that success lasts for years to come.
Melissa Houston, Contributing writer, Forbes
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