Starter for Ten - Own your wellbeing

I was delighted to be asked to be the guest editor for this week’s edition of Starter for Ten and without further ado, I’m going to jump straight into the theme of this week’s edition, which is a subject very close to my heart.

It’s the topic of small business owner wellbeing. But why this topic? And why now? It’s because of a particularly interesting piece of research recently carried out by Xero, the accounting software company. They surveyed 4,600 small businesses across seven countries and found that overall, small business owner wellbeing is currently below that of the general population, serving as a reminder of the myriad challenges small business owners are dealing with currently – including high inflation, slowing economic growth, poor employee wellbeing and general uncertainty about the future.

“Despite rising awareness of wellbeing in all facets of our lives, there has been little data about small business wellbeing beyond financial measures,” said Rachael Powell, Chief Customer Officer, Xero. “Our research highlights what we already suspected – that small business owners are experiencing many wellbeing challenges at the moment, coming at them from a variety of sources.”

Given my own episode of burnout six years ago, it is often unexpected and seeing the signs can be hard. It can also affect the strongest and highest performing team members. I have numerous conversations with leaders and founders who are worried about burning out and whose wellbeing is under par, and the signs of deterioration are often difficult to spot (I’ll talk more about that in a later edition of SFT). Unless wellbeing is on the agenda, there is the potential for there to be problems bubbling under the surface which can be easily resolved with the right conversations and support.

I’m going to be doing a column on founder wellbeing for the next few weeks and I’m keen to speak to anyone with an interesting story or personal experience related to wellbeing, which may help others. So, get in touch if you do.

Natasha Wallace

Founder & CEO at Conscious Leadership Co (TCLC)

The global state of small business owner wellbeing

Xero carried out a piece of research between November 2022 and February 2023 surveying more than 4,600 small businesses across seven countries – Australia, Canada, New Zealand, Singapore, South Africa, United States and the United Kingdom. Their questions covered three areas:

How small business owners were feeling about a range of issues in their business including financial distress, employee wellbeing, capacity to take a break, overlap of business-related stress into personal life and access to wellbeing help.

They tried to understand small business owner wellbeing from a broader - beyond financial - perspective, as there was little to no data examining it. They sought to fill this gap by asking a significant number of small business owners globally about their personal wellbeing, professional anxieties and overall satisfaction with life. They felt that doing so was particularly timely given the wave of macro factors that have disproportionately pressured small business owners – from the pandemic to persistently high inflation and fears of a recession.

They identified five key factors that might influence the overall wellbeing and life satisfaction of small business owners, which will be explored through this newsletter.

Read the full report here →

Prioritising recovery

When small business owners feel rested and?free to take time off when needed, their broader wellbeing benefits.

Xero found that an average across the seven countries of one in five (22%) of all small business owners can only take a regular break from work some of the time, emphasising the relentless pace of work small business owners often find themselves undertaking. South Africa had the most limited ability to take a break at no time or only some of the time (27%) followed by the United Kingdom (26%) and Australia (23%). Small business owners in New Zealand found it easiest to take a break, with only 19% finding it difficult. In Singapore, small business owners were less likely than those in other countries to be able to take a break most or all the time (39%).

South African and New Zealand small business owners also reported high levels of restedness, with the United Kingdom and Australia experiencing the lowest levels.

Fulfilling work

While most small business owners derive some level of fulfilment from their work, those who find their daily activities interesting or mentally stimulating may be more likely to experience better overall wellbeing.

Overall, Xero found that most small business owners still experience relatively high levels of fulfilment from their work, led by South African and Canadian owners with the United States close behind. The only exception: owners in Singapore were significantly less likely to feel fulfilled in their work-related activities most or all the time than in any other country. Notably, New Zealand small business owners also experienced relatively low fulfilment in their work, suggesting that measures of “job satisfaction” may not be as strongly related to overall wellbeing amongst small business owners as it is amongst employees - which is backed up by the wider research on this topic.

Accessing support

Affordable counselling and support remain inaccessible to small business owners - which could amplify risks to wellbeing during times of macroeconomic adversity and personal crisis.

It’s clear that small business owners face substantial stresses that can erode their wellbeing, regardless of where they operate. However, we discovered that many small business owners also find themselves lacking the psychological support and care resources that employees can receive through public service programs.

In fact, an average across the seven countries of 21% of all small business owners stated they could not access affordable counselling if they needed it, with that number rising as high as 37% in the United Kingdom where small business owners reported the least support availability.

Recommendations based on these results:

It can be all too easy for founders to become overly focused on the day-to-day operations of the business or working on activities that we don’t enjoy, losing sight of the original purpose that fuelled the company - and the work that really excites them, and that plays to their strengths. Founders, NEDs and investors should pay attention to this, understanding the importance of curating roles that balance the need for delivery with the need for meaning.

Tackle the root causes of employees’ mental health issues

It’s clear that when employees suffer, their employers do too. Policies and programs that help employers address the root causes of employee stress, including workplace factors, will also bring long-term benefit to small business owners’ wellbeing.

Wellbeing and mental health need to be supported at all levels of the company

You can provide support to the employees but there are often leadership behaviours and systemic issues that undermine efforts that are done here. Which means, doing work at both levels. And this isn’t about mental health first aid, throwing in a mental health app that people can use when they want to, or giving away free fruit. It’s about there being a shared language around wellbeing and what a healthy way of working looks like for the team.?

Counselling for small businesses or networks for peer support

Xero?found countries with less access to support also tended to suffer on other wellbeing metrics. They recommend increased investment and/or policy support for counselling services that address the unique positions and pressures of small business ownership.

Explore ways to achieve greater restedness

Founders need to be given permission to rest. The relentless pursuit of delivery can be too much and with an increasing amount of senior people burning out and opting out of their professions, recognising the importance of self-care is essential. There is still a dominant narrative in the small business and start up world that an “always-on” mindset is essential for success.

Tackling and improving wellbeing is a group effort - as it’s normally a systemic issue. It means founders, NEDs and investors speaking the same language and showing empathy and awareness of what leads to sustained wellbeing in teams - encouraging respite, meaning and co-created solutions.

Read the full report now →

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