Small business owners in Australia are grappling with alarmingly high rates of mental ill-health, sparking urgent calls for targeted mental health support and increased government investment.
New policy brief highlights urgent needs
A new policy brief, Promoting Small Business Owner Mental Health, released by the Wellbeing and Prevention Coalition in Mental Health and the Council of Small Business Organisations Australia (COSBOA), highlights the acute challenges faced by small business owners (SBOs). Data reveals SBOs experience significantly higher levels of stress, depression, and anxiety compared to the general population.
Georgie Harman, CEO of Beyond Blue, emphasized the economic and social toll of untreated mental health issues. “Poor mental health impacts productivity and costs the Australian economy up to $220 billion annually,” Ms. Harman said. “Small business owners are the backbone of our economy, and they should be looked after. We owe it to them, their families, their employees, and their communities. Solutions must focus on prevention and early support to decrease the prevalence and impact of mental illness within the small business sector, so that people don’t reach crisis point with their business or their mental health.”
COSBOA CEO Luke Achterstraat underscored the unique pressures SBOs face. “Small businesses employ almost half the private sector workforce, yet they operate in a unique and often challenging context, facing financial pressures, isolation, and long working hours,” he said. “These factors, combined with limited access to resources and mental health support, create a perfect storm for mental ill-health. Many SBOs find mental health support difficult to find and afford and are generally unaware of the programs and services available, so more work is needed to ensure these programs are visible, accessible, and useful to small business – including through their trusted and familiar channels. We need to meet them where they are.”
Dr. Jaelea Skehan OAM, Director of Everymind, pointed to systemic gaps in support. “Policy, legislation and support strategies are often targeted towards large businesses, leaving small businesses behind in taking effective action on mental health in the workplace,” she said. “We need to continue to actively involve small business owners to ensure they have fit-for-purpose advice and support to prevent and respond to the psychosocial risks involved in owning and running a small business. Decisions need to be made with SBOs, not for them.”
The coalition is urging governments to prioritize SBO mental health through measures like embedding SBO voices in policy design, increasing funding for evidence-based programs, addressing unique risk factors, and promoting accessible support through trusted channels. Additional recommendations include ensuring national consistency, supporting psychological risk management, and investing in research to better understand SBO mental health needs.
New South Wales business owner Jeremy Suggett shared his personal struggles, highlighting the lack of tailored support. “Small businesses need more accessible, flexible support systems – ones that recognise our distinct pressures and can help us create healthier work environments for ourselves and our staff,” he said. “We have different needs – even if we aren’t feeling mentally well, we still need to turn up, answer the phone/emails, send out stock, pay the staff and keep the business going – the buck stops with us.”
Reflecting on his challenges last year, Mr. Suggett added, “I felt very exposed, I lost clarity, I lost interest in sleeping and eating, and everything became stressful. I didn’t have the option of taking time off, but needed help suitable to my situation. We need more policies that recognise the struggles we face, that reflect our voice and support that fits the reality of small businesses.”
The policy brief praises programs like Beyond Blue’s NewAccess for Small Business Owners (NASBO), a free, confidential service that helps prevent mental health issues from escalating, and Everymind’s Ahead for Business, which has boosted SBOs’ confidence in managing their wellbeing.
With small businesses comprising 97% of Australia’s business landscape, the coalition warns that ignoring this crisis could have far-reaching consequences.
Resources
- Beyond Blue Support Service available 24/7 on 1300 22 4636 or beyondblue.org.au/getsupport
- National Debt Helpline 1800 007 007 or ndh.org.au/financial-counselling/find-a-financial-counsellor/
- Small Business Debt Helpline 1800 413 828 or sbdh.org.au
- Workplace Wellbeing business.vic.gov.au/business-information/workplace-wellbeing
ALSO READ: Mental Health day: Four leaders, four lessons on mental health
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
