At 3.17am, entrepreneurs across South Africa lie awake calculating tomorrow's cash flow, mentally juggling supplier payments, and wondering if they can make payroll. Old Mutual SMEgo released the first survey on Mental Health and Wellbeing focused on entrepreneurs in South Africa in support of World Mental Health Month. This research reveals a widespread mental health crisis affecting confirmed business owners, with profound implications for individual wellbeing, family stability, and South Africa's economic development.
138 business owners in South Africa participated in the survey. 41% earned below R500,000 annually and they experience the isolation factor that sees them being excluded from business networks and opportunities. 29.7% earn between R500,000 -R1m. These business owners report growth pressure anxiety from investment decision paralysis; business reinvestment vs. personal security and leadership responsibility. 15.9% earned between R1m – R5m and they experience cognitive overload from operational complexity and competition intensity anxiety as well as a deterioration of work-life balance despite a higher income. Finally 10.2% earned over R5m and they felt an overwhelming stakeholder and performance pressure.
The survey also revealed specific industry health stressors. The Food and Beverage sector involved regulatory compliance anxiety and operational stress from perishables inventory and food waste. Seasonal revenue fluctuations also came into play. The Health and Wellness sector reported on the ethical compromise dilemma were professional ethics conflict with business survival. This includes professional liability anxiety such as ongoing malpractice and treatment failure concerns. The Construction sector reveal how systemic corruption creates mental health burdens for entrepreneurs forced to choose between ethical integrity and business survival.
Just under 50% of businesses reported that their businesses were unregistered with the CIPC and the mental health trap they experience from documentation complexities and system breakdowns in registering their businesses, the mental health consequences include a planning paralysis, legitimacy concerns that impacted investment hesitation and banking access.
Another important paradox was on business systems, technology sophistication and stress. 60% of respondents use basic tools including WhatsApp, notebooks, calculators and basic banking tools. The simplicity reduces learning stress but creates inefficiency. The 5% that use advanced tools such as CRM systems, project management and business tools such as SMEgo had a 40-60% reduction in administrative tasks creating mental space for focus. 95% reported using WhatsApp, however this created a personal life boundary erosion problem. Entrepreneurs report that WhatsApp's convenience comes with the cost of eliminating work-life boundaries. Customers expect immediate responses because they can see message read receipts, creating constant availability stress.
However some positives were shared in the survey. Entrepreneurs have found ways to cope with faith-based stress management through daily prayer and meditation as well as church based community networks dominating. Exercise and daily walks came out high as a stress management interventions. Traditional healing was preferred as a tangible intervention versus therapy that is perceived as “just talk”. Substance abuse came out very low with only 5% sharing that they used substances to cope.
“The 138 entrepreneurs who shared their mental health experiences deserve systems that recognize the full scope of psychological infrastructure required for sustainable business development. They are building economic resilience and survival while sacrificing personal wellbeing in ways that ultimately threaten both individual success and community economic development” – concludes Nobesuthu Ndlovu, director SME, Old Mutual Corporate.
To access the full report, click here; https://tinyurl.com/3abudaf9
