Small business, big stress – and finding the right balance for success A report commissioned by cloud-based accounting software firm Xero reveals that for sustainable growth in these challenging times, small business owners in Singapore must prioritise their well-being. Even with the COVID-19 pandemic behind us, the road ahead for many businesses remains uncertain. Small- and medium-sized enterprises (SMEs), in particular, are vulnerable to economic headwinds as they lack the resources available to larger companies. Moreover, shifting consumer preferences, global supply chain disruptions, manpower shortages, stubborn inflation and soaring operating costs have made running a business more complex than ever. In times of adversity, small business owners are more inclined to prioritise the financial health and resilience of their enterprises, often at the expense of their personal lives and well-being, according to The Global State of Small Business Owner Wellbeing report. The report examined the personal well-being, work-related anxiety and life satisfaction levels of 4,600 small business owners in seven countries, including Singapore. The research found that in Singapore, small business owners experienced elevated financial stress in comparison to their peers in the United States, the United Kingdom, New Zealand, Australia, Canada and South Africa. Notably, 55 per cent of respondents in Singapore reported that they felt financial distress more than half the time – 20 per cent higher than the global average. Despite this, their overall well-being remained the highest in the study. A theory put forth by the study to explain these findings is that respondents in Singapore might have a higher tolerance for financial distress compared to their counterparts from the other six countries. “Having worked with many small businesses in Singapore, I find myself continually impressed by their tenacity,” said Ms Koren Wines, managing director of Xero Asia. “Besides having a resilient mindset and a culture that celebrates hard work, there is robust government support for innovation and digitalisation, which, in turn, enables greater efficiency and productivity. Together, these factors lay the groundwork for small businesses to remain optimistic in the face of economic challenges.” WHEN PROFESSIONAL STRESS AFFECTS PERSONAL LIVES Resilience might be a trait that is lauded among entrepreneurs but it is crucial not to downplay the effects of chronic stress, especially when 61 per cent of small business owners in Singapore admitted that their high levels of stress had affected their personal lives. With her own experience as a small business proprietor for over 10 years, Ms Wines understands the pressures inherent in sustaining such enterprises. “The responsibility of running your business efficiently, making decisions about the future and paying your employees on time falls entirely on your shoulders,” she said. “All too often, the accompanying stress bleeds into one’s personal life, leaving business owners feeling isolated and disconnected from their loved ones.” A MINDSET THAT PRIORITISES REST According to the report, 39 per cent of Singapore business owners said they were unable to take breaks from work for most or all of the time – 17 per cent higher than the global average and almost double that of their counterparts in New Zealand. Ms Rachel Chan, co-founder and chief of relationships at Luxe Botanics, acknowledged that Singaporean business owners place high expectations on themselves to perform: “Pressures like rising rents and the challenges of recruiting and retaining talent have led to a tendency to work overtime in order to keep up.” To boost their well-being, small business owners should cultivate a mindset that prioritises rest, especially when taking leave is not an option. This could mean allocating an hour to exercise between meetings, having lunch with a loved one or scheduling downtime. EASING THE STRAIN OF DAY-TO-DAY TASKS The Global State of Small Business Owner Wellbeing report also found that while most small business owners derived fulfilment from their work, those who found their daily activities interesting or mentally stimulating were more likely to be happy. Highlighting this dynamic, Ms Wines underscores the role of technology to optimise operations. “The integration of technology solutions can be liberating for business owners as it creates space for more rewarding pursuits like exploring new ideas and innovations,” she said. Xero’s App Store has a suite of small business tools that can help proprietors automate their back-office processes and harness data-driven insights for informed decision-making. With a selection of over 1,000 tools, sourced from both Xero and its partners, the store includes artificial intelligence-driven products like the new Analytics Plus forecast and insights tool. This advanced resource helps business owners mitigate uncertainties related to cash flow by giving them more visibility on their financial position and facilitating proactive management of future scenarios through a user-friendly dashboard. “Digital solutions can be powerful enablers for small businesses. By streamlining and automating tasks, teams are not only more efficient and productive but also able to reduce costly errors. Solutions like Xero can generate real-time data, giving business owners actionable insights that improve decision-making,” said Ms Wines. “Automating processes also strengthens employee retention by enabling everyone to focus on higher-value, more fulfilling work. Over the long term, this reduces stress and gives people the time and balance they need to be happy.” Try Xero free for 30 days.
This content was originally published here.
