Improving your lifestyle is the driving force behind many small business owners choosing to start their own business, but what does small business owner happiness actually look like?
That’s what we set out to reveal in a new report released today. Global state of well-being for small business owners.
Wellbeing is getting a lot of attention, and there is no shortage of articles and reports telling us how we can have a better balance in our lives. Experts in the field have also improved the way health is measured. For example, the annual World Happiness Report uses a consistent methodology to rank the “happiness” of people in 137 countries, from Finland to Afghanistan. But most of these metrics focus on the population as a whole, trying to figure out how happy everyone is.
Much research has been done on overall well-being and well-being, but less research has been done to measure the happiness of small business owners.
To fill this gap, Xero commissioned research across seven countries: Australia, Canada, New Zealand, Singapore, South Africa, the United Kingdom and the United States, gathering the experiences of over 4,600 small business owners.
The resulting report is Global state of well-being for small business owners, It highlights the challenges facing small business owners.
Owners of SMEs are less satisfied with life than the general public
In five of the seven countries we surveyed, small business owners report lower life satisfaction than the general population. Two exceptions were Singapore and South Africa. These two countries ranked in the top two in Xero’s small business owner-focused survey. In contrast, according to the Gallup World Poll, both of these countries are outside the top 20 in the overall population happiness ranking.
The benefits challenges faced by small business owners can be grouped into five themes:
- Macroeconomic and business-related financial difficulties: Domestic and global economic conditions tend to affect the well-being of small business owners, as does the frequency of financial hardships faced by small businesses.
- Stress Management and Mindset: A bright, calm, and active mindset tends to contribute significantly to the well-being of small business owners, but the stress on their personal lives caused by business problems has some impact on overall life satisfaction. It seems that.
- Prioritize Recovery: When small business owners get rest and are free to take time off as needed, they generally have broader well-being.
- fulfilling work: Most small business owners derive some degree of fulfillment from their work, but those who find their day-to-day activities interesting or mentally stimulating are more likely to report overall well-being. is likely to improve.
- Access to support: Small business owners still have relatively little access to affordable counseling and support, which can put them at greater risk to well-being during macroeconomic adversity and personal crises.
What can be done to support the health of small business owners?
Based on our findings, we have made several recommendations for small business owners, advisors, governments and industry associations, which are outlined in our report.
- Invest in policies that encourage small business innovation and learning. We observed a significant association between small business owners finding their day-to-day activities interesting and their overall well-being. This is perhaps more pronounced than any other subject we have examined. There also seems to be a link between job fulfillment and higher levels of happiness. This suggests that policies that support small business owners’ learning, upskilling and innovation, such as digitization, can help improve the overall well-being of small business owners.
- Address the root causes of employee mental health issues. Employee mental health issues have emerged as a consistent stressor for small business owners. It is clear that when employees suffer, employers suffer too. Policies that help employers address the root causes of employee stress are also likely to have long-term health benefits for small business owners, especially those under 30.
- Counseling for small businesses and networks for peer support. Countries with less access to welfare support also tended to suffer in other welfare indicators. Counseling dealing with the unique positions and pressures of small business owners, especially as doing so is likely to bring continued benefits to employees. .
- Explore ways to achieve deeper rest. Our research found that even though small business owners say they can take breaks easily, that doesn’t automatically translate to higher levels of rest. Small business owners would do well to cultivate the mindset of deliberately setting aside work to rest, rather than asking for rest through vacations or other external changes.
What’s Next for Small Business Owners
The report highlights that while running a small business can be very rewarding, it can also face more challenges than the average person might face.
If you are a small business owner, I encourage you to read this report and use it as an opportunity to think about your own health and how you can improve it. If you are a small business advisor, keep these insights in mind and think about how you can help your clients achieve a better balance in their lives.