Mental health of SME owners in rapid decline, research reveals
Australian SME owners are feeling the pressure and are overwhelmed trying to navigate the current challenges of the cost-of-living crisis, CommBank has said.
The Commonwealth Bank of Australia commissioned new research into the mental wellbeing of SME owners that highlighted the stress the majority have experienced in the current economy.
In the last 12 months, 52 per cent of business owners and senior managers have reported that their mental health has been impacted by the economic climate.
The research by CommBank also revealed 65 per cent of surveyed businesses have faced unexpected expenses over the past year, equating to $7.3 billion.
CommBank said 48 per cent of respondents reported equipment repairs and replacements were the most common area of unexpected expenses, while 33 per cent said higher supplier costs and increased utility costs.
According to the results, $4,300 in unexpected expenses had to be paid by SME owners over the past 12 months.
This had a direct negative impact on the mental wellbeing of SME owners, as the economic conditions have limited the availability of cash.
CommBank executive general manager, small-business banking Rebecca Warren said the resilience small businesses have shown is incredible in the face of tough economic conditions.
“Running a small business is hard yakka and right now, it’s tough,” she said.
“Rising costs of doing business and unexpected expenses can have a big impact when money is already tight.”
CommBank said the company has been reaching out to Australian SMEs to gauge the current attitude towards the economic climate.
The bank has demonstrated certain tools, mechanisms, and support systems are available for SME owners who are ‘doing it tough’ in the operation of their business.
“Our priority is to ensure those who need support understand what measures are available such as business overdrafts, invoice financing or flexible repayment plans,” Warren said.
“We have been reaching out proactively to hundreds of thousands of our small business customers to check in on them, to make sure they are receiving the support they need and that they are aware of some of our tools that can help them run their business.”
To highlight the importance behind the mental health of SME owners, CommBank announced an upcoming partnership with not-for-profit mental health organisation Smiling Mind.
The partnership will provide small-business owners with access to mental wellbeing programs, tools, and preventative strategies for maintaining mental health.
CommBank said the mental fitness program has been specifically designed to promote mental wellbeing with a specific focus on businesses.
Smiling Mind CEO Sarah La Roche said the company is proud to have partnered with CommBank to provide Australian small-business owners support for their declining mental health amid economic challenges.
The program will be available and free to access for all small-business owners via the Smiling Mind app from 9 September.
Warren said the survey results showing poor mental health for more than half of small-business owners were “incredibly concerning” and CommBank recognised the scale of the impact.
“Small-business owners are extremely time-poor, they have multiple plates spinning at any given time which makes prioritising their own mental health and wellbeing more challenging,” she said.
Any small-business owner experiencing poor mental health has been recommended to reach out to their bank to seek support and guidance.
