The proportion of New Zealand’s SME owners who say they have experienced depression since starting or taking over their business has increased on last year, according to insights from MYOB’s 2023 Business Monitor.
The nationwide survey of 1,000+ SME owners and decision makers revealed that 37% of SME leaders reported experiencing a mental health condition since starting or taking over their business, and while stress and anxiety are the most widely felt in this group (83% and 71% respectively), 44% said they have experienced depression – up from 39% in 2022.
The results follow a particularly challenging trading period for local businesses, with rising costs and tighter consumer spending impacting cashflow and profitability, ongoing supply chain challenges, plus additional unforeseen pressures like extreme weather events impacting homes and livelihoods.
MYOB Chief Employee Experience Officer, Helen Lea, says the latest Business Monitor insights are deeply concerning.
“SME owners and operators are under an incredible amount of pressure. Many are finding themselves with less and less in the tank after dealing with a seemingly endless series of crises and challenges – whether it’s the impact and aftermath of the floods or Cyclone Gabrielle, or a cashflow crunch as inflation and rising interest rates take hold,” Helen explains.
“It’s no secret that these challenges - on top of the typical business pressures - are taking a serious toll on their physical and mental wellbeing, and the increase in SME owners reporting depression is absolutely heart-breaking.
“This is why awareness of and access to local programmes specific to supporting small business owners’ wellbeing, like First Steps, is vital. What’s more critical, is that these local initiatives can deliver support quickly, when its needed. Business owners and leaders are not alone in their struggles and for those seeking urgent support, there are trained counsellors just a text or call away, 365 days of the year, through channels like 1737,” says Helen.
“It is completely okay for small business owners to feel times of mental distress in the current environment,” says Shaun Robinson - Chief Executive of the Mental Health Foundation.
“No one is invulnerable to the stress of the last few years and accepting that is key to managing it.”
“It’s great to see that many people are doubling down on behaviours that support their wellbeing. People can also help one another by listening and talking in a non-judgemental way - human empathy has enormous power to ease mental pain. However, we all need to be alert to those who experience prolonged distress or depression and encourage them to seek help through GP services or helplines, if necessary,” Shaun adds.
To help manage or improve their mental wellbeing, local business owners and leaders continue to turn to a range of strategies, including exercise (60%), social time with family and friends (58%), hobbies or entertainment (52%), and taking time out from the business (38%).
“Heading into this year, we saw that many SME owners and decision-makers wanted to prioritise their wellbeing, with many keen to take that long awaited holiday, spend more time with family, or improve their work life balance,” says MYOB’s Helen Lea.
“When you’re running a business, finding a decent chunk of spare time isn’t always easy, but taking small active steps to improve wellbeing - whether it’s getting in some exercise, making time for friends and family or taking even a small amount of time out - can make a big difference,” she adds.
Managing employees’ mental wellbeing
When it comes to supporting their team members and colleagues, 27% of SME leaders surveyed said they had discussed mental wellbeing and support with employees and colleagues over the last year – a slight increase from 25% in 2022.
Taking it a step further, this year’s Business Monitor also revealed that owners and operators are also doing more to support their employees, with nearly a quarter (23%) saying they have implemented new mental well-being practices or support for employees over the last two years.
For those that have implemented new wellbeing practices in their organisations, the most popular initiatives to help improve mental health and wellbeing include:
Introducing flexible hours for better work/life balance: 56%
Mental health day(s) off: 45%
Regular check-ins to help manage workload: 41%
Team bonding sessions: 34%
Education around mental well-being practices: 29%
For the three quarters (75%) of SMEs that haven’t implemented any new mental well-being practices or support in recent years, responses showed this was because: they felt their employees didn’t need it (25%), they already offered sufficient practices or support (22%), or sadly, they’ve never thought about it (14%).
“Finding and keeping quality staff is a key success factor for any business. There is ample evidence that supporting your people’s wellbeing pays many dividends in staff engagement, productivity, and customer service,” says Shaun Robinson.
“We are all in 2023 together and supporting our teams and each other is just the right thing to do.”
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Information for businesses
The Mental Health Foundation has a suite of resources with practical tools to help people managers create healthy workplace cultures.
First Steps - online support hub for business owners, managers and employees, with resources, video content and articles, as well as the ability to connect with qualified registered providers to provide one-on-one funded support.
The Smiling Mind Small Business Program is designed for small business owners to build their mental fitness using medidations, exercises and discovery activities.
New Zealand national helplines
Need to talk? Free call or text 1737 any time for support from a trained counsellor.
Lifeline – 0800 543 354 (0800 LIFELINE) or free text 4357 (HELP).
Depression Helpline – 0800 111 757
Suicide Crisis Helpline – 0508 828 865 (0508 TAUTOKO).
Healthline – 0800 611 116
Samaritans – 0800 726 666