Small business stress: Nearly half of owners say they have considered giving up, Xero report finds
Nearly half of respondents to Xero's survey had considered giving up their business due to stress.
A serious health issue made Mat Pedley question whether he could continue to run his hospitality business.
But the owner of several venues in Hamilton, including Mr Pickles Bar & Eatery, said support from family and friends and his love of the industry helped him keep going.
“You learn a lot from experiences like that, and sometimes it takes a while for those learnings to sink in. I think I’m getting better at this every week, but sometimes it’s okay to say no as a business owner.
“You can’t do everything.”
According to new research from Xero, nearly half of Kiwi small business owners have considered giving up in the past year because of stress.
And 75% felt the current financial year had been more stressful than previously.
Of those surveyed for Xero’s Emotional Tax Return report, 48% of respondents blamed rising costs for increased stress and 30% cited unpredictable demand.
Xero New Zealand country manager Bridget Snelling said the results reinforced the confronting realities of running a small business.
“Running a small business is hard work, and business owners often have to make significant sacrifices – missing a child’s swimming sports or working all hours and not getting enough sleep,” Snelling said.
“This is what we call an emotional tax – the hidden personal costs small business owners have to pay every year."
Snelling said stress doesn’t stay at work for business owners, and often the end of the financial year amplifies the issue.
Almost half (42%) of business owners said they found the period more stressful than the rest of the year.
More than a third (34%) of respondents said they needed to chase paperwork, while 31% worried about making mistakes.
More than half (54%) said they had been surprised by a tax outcome, with the majority of these being negative.
Snelling said proactivity was crucial during the period to help get on top of things and avoid any unwanted surprises.
Another impact of stress is on productivity, with business owners losing an average of five hours of productive work every week – equating to roughly 30 working days lost per year.
Respondents to the survey also highlighted the physical burden, with 55% sharing that they had got less sleep since starting their business, and a further 12% admitting to losing five or more hours a night.
Optimism key
Pedley said his love of the hospitality industry kept him coming back after his health scare.
“It’s my love of the different things we do. I think my core reason for doing that, doing what I do, is because of the people we work with.”
Now able to reflect after overcoming the issue, Pedley said having his wife, friends, and team were “absolutely pivotal” for him to keep going.
“There was support from the business community. I think if you’re not able to find or utilise someone who can help you, having your own support network is really important.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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