The latest mental wellbeing insights from MYOB business monitor show that anxiety and depression are increasing among New Zealand’s SME owners, with 37% reported to have experienced mental distress since starting or taking over their business.
The nationwide survey, which included over 1,000 SME owners and decision-makers from across the country, also shows that 45% of SME owners facing declining revenue reported mental health challenges, marking a 10% increase compared to the previous year.
Among the SME decision-makers who have experienced a mental health condition, 77% reported experiencing anxiety, an increase from 71% in 2023. Additionally, 47% have experienced depression, up from 44% in 2023.
Emma Fawcett, MYOB general manager for SMEs, highlighted the immense pressure local business owners are facing and emphasises that the weight of financial stress should not be underestimated.
“For those running SMEs across the country, the financial burdens weighing on them are significant. On top of juggling rising costs, paying their people, and keeping their business afloat, they’re also dealing with the cost-of-living pressures all Kiwis are experiencing right now. It’s a lot for anyone to carry on their shoulders, and the impact this is having on their mental wellbeing is clear.”
“The past few years have been a long and constant uphill battle for New Zealand’s business owners, and it’s devastating to see an increase in the number reporting anxiety and depression, but it’s important for them to realise they’re not alone and support is available, including resources specific to business owners, like First Steps and the Mental Health Foundation’s Five Ways to Wellbeing,” she added.
MYOB’s insights also examined the factors that have negatively impacted SME owners’ wellbeing over the past 12 months. 32% cited work-related stress, and an equal proportion reported a lack of sleep. Additionally, 27% pointed to their personal finances, 25% mentioned their general workload, and 22% highlighted political uncertainty as significant contributors to their mental health struggles.
To help manage their mental wellbeing, 64% of SME owners are said to be turning to exercise, 55% consider having social time with family and friends, and 49% say they enjoy hobbies or entertainment. Meanwhile, 43% of SME owners also say they are taking more time out from their respective businesses, a 5% increase compared to last year.
“While methods to proactively manage mental wellbeing may differ in approach for each individual, it’s critical that local business owners can recognise when these actions aren’t delivering the boost they need and turn to professional support to get them through challenging times and feelings of overwhelm and distress,” said Fawcett.
When it comes to addressing mental wellbeing and supporting discussions with their team members or colleagues, the insights showed that 27% of SME owners have had these types of conversations within the past 12 months.
44% of millennial business owners said they have discussed mental wellbeing in the workplace, higher compared to Gen X (30%) and Baby Boomers (21%).
Chief executive of the Mental Health Foundation of New Zealand, Shaun Robinson, highlighted the urgent need for genuine and non-judgmental conversations about mental health in the workplace.
“Breaking the stigma surrounding mental health begins with creating an environment where employees feel safe to talk about their mental health without a fear of judgement. A key to this is recognising that our mental health is an asset, and we can have positive mental health as well as times of challenge.”
“Looking for ways to build wellbeing and positive mental health in the workplace, such as applying the Five Ways to Wellbeing, builds stronger people and teams and makes talking about mental health less scary. Encouraging these conversations not only fosters a supportive work culture but also improves overall productivity and job satisfaction.”
Robinson also noted that small business owners should have the courage to lead by example.
“Talking about their own ways of uplifting personal wellbeing, seeking support when needed, and cultivating a culture where wellbeing is front and centre at work are core to a well-functioning business.”
“Supporting small business owners’ mental health is vital for the resilience and success of their business, as healthy, well-supported leaders are better equipped to navigate challenges and lead their teams effectively,” he explained.
The ongoing impact of mental health issues on a significant number of entrepreneurs highlights the importance of creating a workplace culture that prioritises mental wellbeing and encourages supportive conversations. Addressing these challenges can have far-reaching benefits for individuals, businesses, the economy, and the wider community in the long run.