The past three years have been tough for many Australians. COVID lockdowns, natural disasters and global instability have had a significant impact on many small businesses.
The past three years have been tough for many Australians. COVID lockdowns, natural disasters and global instability have had a significant impact on many small businesses.
These disruptions have not only drained financial resources – they have harmed the mental health of small business owners.
In December 2022, the Federal Treasury Department released their ‘Small Business and Mental Health - Through the Pandemic’ report which is based on a national survey conducted earlier in the year with 1,007 small business owner participants.
The report contained a number of key insights, including:
- 22% – just over 1 in 5 – of small business owners said that they had been diagnosed with a mental health condition by a medical professional
- 46% small business owners ‘agreed’ or ‘strongly agreed’ they would be treated poorly if they disclosed that they had been diagnosed with a mental health condition
- 58% said that they would not consider turning to a GP, psychologist, counsellor, or other mental health professional for help
- 66% indicated that they would ‘never’ seek support from a mental health helpline
It is important to note that this survey specifically asked about mental health conditions that had been diagnosed by a medical professional.
Given that the responses indicate that stigma about mental health still exists within the small business community, it is likely that the number of respondents with a mental health condition is underrepresented.
A strong central theme articulated by small business owners was that they felt they needed to ‘do it all’.
They felt they had to keep up the appearance of being fine even when they were struggling with their mental health because others – family, business partners, employees, and suppliers – depended on them. As one respondent said: “it all rests with me.”
Over 97% of businesses in Australia are small businesses and they employ more than 5 million people. They are indisputably the engine of our economy and franchising is the predominant business model in the sector.
The pandemic provided a clear demonstration that the advantages of the franchise business model extend beyond brand association.
A franchise business owner is not operating alone. Their franchise network can offer support for recruitment and retention, marketing and the adoption of new technology platforms. Each of these help lessen the burden of managing their business. Furthermore, an increasing number of franchise networks are investigating additional ways in which they can provide support to franchisees, including mental health assistance.
As the peak body for the $172 billion franchise business segment, which employs more than 565,000 people, the Franchise Council of Australia is committed to working with all levels of government to provide small businesses with appropriate, accessible and affordable mental health support.
The Federal Government has allocated over $15 million for tailored programs to support small business owners’ mental health and wellbeing, such as the ‘NewAccess for Small Business Owners’ and ‘Small Business Debt Helpline’ programs.
However, the findings in Treasury’s report clearly demonstrate that more needs to be done and that comprehensive action is needed.
As noted by the report, many within the small business community would not consider using existing support services and amongst those that would, awareness of the services is very low – for example, only 12% of respondents were aware of the ‘NewAccess for Small Business Owners’ program.
To close on a positive note, the report did find that 37% of respondents felt more comfortable talking about their mental health in the aftermath of COVID-19. While the pandemic had many negative impacts, this is a welcome development.
The Franchise Council of Australia is the peak industry body for the $172 billion Australian franchise sector. We represent franchisors, franchisees, business advisors and small business owners who collectively employ more than 565,000 Australians. The FCA advocates for responsible economic leadership at a national level as part of our mission to support the ongoing success of our members, franchising, and businesses across Australia.
