News
2 June, 2025
Business and mental health
Small business owners are facing concerning rates of mental ill-health, prompting calls for greater investment in tailored mental health supports.
The Wellbeing and Prevention Coalition in Mental Health (WPCMH), together with the Council of Small Business Organisations Australia (COSBOA), has released its latest policy brief Promoting Small Business Owner Mental Health.
The latest data shows that small business owners (SBOs) continue to experience significantly higher rates of stress, depression, and anxiety compared to the general population.
Beyond Blue CEO Georgie Harman said people are struggling and there are significant knock-on effects to the economy. “Poor mental health impacts productivity and costs the Australian economy up to $220 billion annually,” Ms Harman said. “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 said small businesses make up 97 per cent of all businesses in Australia. “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. 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.”
Everymind Director Dr Jaelea Skehan OAM said the policy brief aims to put the spotlight on what is currently missing. “Policy, legislation and support strategies are often targeted towards large businesses,” 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.”
The WPCMH is urging governments at all levels to prioritise the mental health of SBOs by:
· Embedding the voices of SBOs: ensure programs and policies are tailored with input from SBOs.
· Protecting and promoting mental health: increase funding for evidence-based programs that support SBO wellbeing.
· Addressing distress drivers: ensure programs understand and address the unique risk factors faced by SBOs.
· Increasing awareness, access, and uptake.
· Ensuring national consistency: co-ordinating and sustainably funding a national approach consistent with the National Workplace Initiative.
· Supporting risk management: help SBOs identify and mitigate psychological health risks.
· Building the knowledge base: investing in research.
