Australia — Recent research from Commonwealth Bank (CommBank) reveals that more than half of Australian small and medium-sized businesses (SMEs) are grappling with significant mental health challenges, exacerbated by the ongoing cost-of-living crisis and unexpected financial burdens.
The CommBank study indicates that 52% of business owners and senior managers have experienced mental health impacts due to economic conditions over the past year.
Unexpected Expenses Intensify Financial Strain
The research highlights that nearly two-thirds (65%) of SMEs encountered unforeseen expenses in the last year, amounting to a substantial $7.3 billion. These unexpected costs were primarily attributed to equipment repairs, increased supplier prices, and rising utility bills. On average, small businesses faced an additional $4,300 in unplanned expenditures.
Rebecca Warren, CommBank’s Executive General Manager for Small Business Banking, acknowledged the resilience of small businesses amidst these challenges. “Running a small business is hard work, and right now, it’s particularly tough,” Warren remarked.
CommBank’s Support Measures
In response to these challenges, CommBank is providing SMEs with a range of financial tools and services designed to alleviate financial pressure. These include business overdrafts, flexible repayment plans, and cash flow tracking through the Business Cash Flow Tool.
Additionally, CommBank has launched a mental health support initiative in collaboration with Smiling Mind, a mental fitness organization. Starting next week, business owners will have access to mental health programs via the Smiling Mind app.
“These resources will be accessible anytime, anywhere, removing barriers to support,” said Sarah La Roche, CEO of Smiling Mind.
Addressing Mental Health Challenges
CommBank recognizes the toll that financial pressures are taking on business owners’ mental health. “Small business owners are extremely time-poor and manage multiple responsibilities simultaneously, which makes prioritizing their own mental health and well-being particularly challenging,” Warren added.
CommBank’s initiatives aim to support SMEs not only through financial assistance but also by addressing the crucial aspect of mental well-being during these difficult times.
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