Mental health and COVID-19 in small and micro businesses

SIRA commissioned UON to conduct qualitative studies into the impact of mental health on small and micro businesses during the covid-19 pandemic. The micro business study is now complete with the final report available below. The small business study is continuing, with the final report expected in June 2022.

The findings will help SIRA and the broader mental health system understand the stressors for small and micro businesses in NSW and help strengthen the evidence base for mental health tertiary interventions.

Findings

Four reports have been completed by UON, a key summary of each report can be found below:

Literature Review in to Workplace Mental Health approached in Micro Business Content

Most industry and academic work has focused on establishing mentally healthy workplace practices for large organisations, this has impacted the uptake and practicality of mental health interventions in micro-businesses.

Data collection for micro-businesses is difficult as it is usually categorised as a small business with key data collection agencies (such as the ABS).

Literature Review into Small Business Mental Health ‘Crisis in Small Business’

During COVID-19, the personal characteristics of employers and employees has had a significant impact on individual experiences, as has the ability to pivot and implement alternative revenue streams.

Further research into the specific coping methods employed across a long-term open-ended crisis will provide input into design of support measures for future crises.

COVID-19 and small business owners report

• Two semi structured interviews were conducted by UoN with 50 individuals. The interviews were designed to explore the experiences of those working in small businesses throughout COVID-19.
• Key themes included:
• Uncertainty has resulted in considerable stress and fatigue.
• Small busines owners turn to others for advice and support (most commonly accountants, other small busines owners or industry-bodies)
• Returning to work after forced shutdowns was operationally challenging and many had mixed feelings about reopening their businesses.
• Personal responses to COVID-19 crisis were unique and evolved over the course of the crisis.

Mental Health of Australian Micro Business Owners: Final Research Report

34 one hour semi-structured interviews were conducted by UON with micro-business owners across Australia. These interviews were designed to explore themes arising from the micro-business literature review, such as: business owner experience, links between work demands and time management, impact of the business ecosystem on MBO wellbeing and self-analysis of MBO’s skills and their application.

Key themes arising from the interviews included:

• Perception of power has a significant impact on a micro-business owners (MBO) mental health. Factors such obligation to meet client demand, finances, concerns regarding future customer demand for their work and MBO’s undervaluing their work and time out of fear of losing customers play a significant role in MBO mental health.
• Unique characteristics of job autonomy and control are inherent in micro-business, however MBO’s can lose their sense of personal control while engaging in clients’ projects.
• Loneliness of sole operation can impact MBO mental health and undermine their confidence.
• Networks for micro-business owners plays a key role in guidance, support, and sense of community. Which all have a positive impact on mental health.

Recommendations arising from the study:

1. Educate MBOs about how government legislation, regulations and codes of practice can contribute to positive workplace mental health practices.
2. Adapt mentally healthy workplace policies, strategies, and campaigns to reflect a new understanding of autonomy in a micro-business.
3. Use industry networks to promote the introduction of mentally healthy workplace strategies.
4. Include family and friends in workplace mental health campaigns for micro-businesses.
5. Promote networking opportunities for MBOs. Develop a networking portal and share networking events both face-to-face and online so that MBOs can find networks that are either industry based, business based or geographically located. Promote the portal to the small business sector via online campaigns and using small business influencers.
6. Initiate collaborative projects with training providers like NSW Business Connect and others with selected industry associations to provide industry specific business skills relevant to the age/stage of the business. Meet the just-in-time preference for learning that MBOs prefer with mini-learning opportunities that are tailored to the skill gap of the MBO relevant to their existing business experience.
7. Adapt workplace mental health policies, strategies, and campaigns to acknowledge the existing wisdom and experience of the MBO.

Next Steps

The small business mental health project is now conducting five small business case studies into the impact of COVID-19 and is expected to finalise its report in March 2022.

Resources

• When size matters: creating mentally healthy workplaces: a literature review of workplace mental health approaches in micro- and sole – operator business context - PDF 822.1 KB
• Crisis in small business: a literature review PDF - 862.KB
• COVID-19 and small business owners report on stage one findings PDF - 2.847MB
• Mental health of Australian micro-business owners: final research grant report PDF - 4.4MB