New research from CommBank revealed that more than half of Australian small and medium-sized businesses (SMEs) are experiencing significant mental health challenges due to the cost-of-living crisis and unexpected financial burdens.
The CommBank study found that 52% of business owners and senior managers have been mentally affected by economic conditions in the past year.
The research found that nearly two-thirds (65%) of SMEs faced unforeseen expenses in the last year, totaling $7.3 billion. These costs mainly stemmed from equipment repairs, higher supplier costs, and increased utility expenses.
On average, small businesses were forced to shell out $4,300 in unplanned expenditures.
Rebecca Warren (pictured above), CBA’s executive general manager for small business banking, noted the resilience of small businesses.
“Running a small business is hard yakka and right now, it’s tough,” Warren said.
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CommBank is proactively assisting SMEs with a range of financial tools and services, such as business overdrafts, flexible repayment plans, and cash flow tracking through their Business Cash Flow Tool.
The bank has also introduced mental health support through a partnership with Smiling Mind, a mental fitness organisation.
Starting next week, business owners will have access to mental health programs via the Smiling Mind app.
“These resources will be available anytime, anywhere, with no barriers to access,” said Sarah La Roche, Smiling Mind’s CEO.
With the stress of financial pressures, CommBank acknowledges the mental strain on business owners.
“Small business owners are extremely time-poor, they have multiple plates spinning at any given time, which makes prioritising their own mental health and well-being more challenging,” Warren said.
For more information on support services and mental health resources, visit CommBank’s website.
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