New Zealand small business owners coping with stress well, report finds

A report which surveyed small business owners in seven countries from November to February, found New Zealand small business owners ranked third in overall well-being.
Photo: 123RF / Vladimir Cosic

Small business owners are becoming more concerned about work-life balance as financial pressures build.

Cloud accounting software firm Xero’s global small business platform indicated New Zealand small business owners appeared to be coping with stress better than others, according to a recent survey of seven countries.

The global state of small business owner wellbeing report, which surveyed small business owners in seven countries from November to February, found New Zealand small business owners ranked third in overall well-being (63 points), behind Singapore and South Africa.

NZ business owners also placed first for overall life satisfaction, while 49 percent reported feeling calm and relaxed most or all of the time.

“While it’s encouraging to see solid indicators of well-being for New Zealand small business owners when compared to their international counterparts, we need to remember the challenges of the current economic climate,” Xero chief customer officer Rachael Powell said, adding the result also indicated owners were felling more well-being challenges than the general population.

“There’s no doubt the added pressure of high inflation, talent shortages, the Covid-19 pandemic, and uncertainty about the future have all created a tough working environment these last few years,” she said.

However, only 14 percent of New Zealand respondents said they experienced financial distress most or all of the time – with 28 percent saying they never experienced it.

“This may be a result of strong financial literacy within the Kiwi small business sector, or the possible strengthened relationships they have with their accountants and bookkeepers after navigating the challenges of Covid-19 together,” Powell said.

“Strong financial literacy and attitudes towards business finance is important during tough economic times and it’s essential for small business owners to know their numbers to make informed decisions.”

The global state of small business owner wellbeing report drew on responses from more than 4,600 small business owners in seven countries – Australia, Canada, New Zealand, Singapore, South Africa, the United Kingdom, and the United States – to better understand how small business ownership affected different aspects of one’s well-being.