Canadian small business owners lose an average of 31 working days of productivity annually due to stress, according to a new report from Xero.
The Emotional Tax Return report found small business owners spend an average of nine hours per week feeling stressed, concerned or worried about their business. Financial management is a pressure point for 77 per cent of small businesses, prompting 39 per cent to consider giving up their businesses entirely.
Personal toll on business owners
More than half of small business owners report getting less sleep since starting their business, with 23 per cent losing five or more hours per night, according to the report.
Stress has caused business owners to give up exercise (32 per cent), travel (30 per cent) and quality time with partners (26 per cent). Many miss family dinners (15 per cent), birthday parties (12 per cent) and weddings (7 per cent).
Two-fifths of small business owners have kept their business stress from family or partners, and 36 per cent report being more short-tempered with others when stressed.
Impact on business performance
Stress leads to slower decision-making (33 per cent), missed opportunities (29 per cent), slower business growth (22 per cent) and avoidable mistakes including financial errors (21 per cent), according to the findings.
“The Emotional Tax small business owners pay clearly takes a heavy personal toll, and when it consumes nearly a month of productivity, it also becomes a bottom-line crisis. Unfortunately, too many owners are trying to navigate this pressure in isolation,” said Ashalee Mohamed, Head of Canada GTM at Xero.
The advisor gap
While 77 per cent of small business owners report that financial management causes stress, only 10 per cent seek advice from an advisor when feeling pressure.
More than half (53 per cent) have been surprised by a tax outcome. One in 10 would prefer to go to the dentist for a root canal than tackle their taxes. Almost a third (29 per cent) experience stress-caused procrastination due to chasing paperwork (34 per cent) or fear of making mistakes (28 per cent).
Most small business owners (90 per cent) are concerned about the upcoming fiscal year due to rising costs, unpredictable demand and geopolitical uncertainty, according to Xero.
Managing stress
Most small business owners (92 per cent) are taking steps to manage their stress through self-care (52 per cent), exercise (44 per cent) or spending time with friends and family (41 per cent).
“Leaning into digital tools and trusted advisors is the key to closing this gap, protecting business health and reclaiming their quality of life,” said Mohamed.
