Aussie small business owners face mental health crisis

A recent report from Localsearch has highlighted significant mental health challenges faced by small business owners in Australia.

The study reveals that 69% of Australian small business owners believe there are insufficient mental health resources available to them, while 72% feel unsupported in their roles. These findings are part of the first edition of Localsearch's annual State of Small Business Report for 2024, which aims to shed light on the mental health and well-being of small business owners, as well as broader challenges within the industry.

The pressures of mental health have become so overwhelming that over two-thirds, or 67%, of small business owners have seriously considered abandoning their businesses. This reflects a significant mental health strain on these individuals, indicating the necessity for more effective support systems.

Despite these challenges, small business owners are actively implementing measures to support the mental health of their employees. According to the report, 39% have introduced mental health leave days, while a similar percentage have created on-site break rooms. Additionally, 11% have developed formal mental health action plans, and 9% offer access to a mental health support partner.

Ed Ross, co-founder of TradeMutt, a company dedicated to improving mental health within the blue-collar sector, has expressed his understanding of these issues. He commented, "This report paints a tough picture for small business owners, and it's clear many people feel there aren't enough mental health resources out there. The truth is, there are countless resources available, but sometimes it's hard to know where to start and navigating these resources can be time consuming."

He further stressed the importance of preemptive measures, saying, "Ideally, no one should reach a point of burnout before they find the right support. On top of that, getting smart about prioritisation, using technology, or bringing in some extra hands can go a long way in easing the load and stopping that feeling of overwhelm before it hits."

Adam Hargraves, CEO of Localsearch, underscored the critical nature of the situation, stating, "Small business owners are the backbone of our economy, but they're facing immense challenges that go beyond just balancing the books. The mental health strain on these individuals is clear, and it's a problem that demands immediate attention."

He further reiterated Localsearch's commitment to assisting business owners, noting, "At Localsearch, we're committed to not only providing practical tools to help businesses thrive but also advocating for stronger support systems to ensure the wellbeing of the people behind those businesses. No business should have to sacrifice mental health to stay afloat."

Localsearch's report is based on data collected from 512 Australian small to medium-sized business owners during September and October 2024. The report is the first of a series, with subsequent editions planned to focus on cybersecurity and skills shortages in the small business sector.