A new survey by Invoice Home reveals the mental health challenges faced by small business owners, freelancers, and entrepreneurs in the United States. According to the “State of Small Business Mental Health” survey, 2 in 5 small business owners have experienced feelings of depression in the past year due to financial hardships. The survey highlights the severe impact the U.S. economy has had on the mental and physical health of these individuals.
Invoice Home conducted the survey with Censuswide. The data shows that Gen Z and Millennial respondents are particularly affected, reporting high levels of depression, substance abuse, and physical health issues. This is a stark indication of the economic pressures faced by younger business owners.
The survey found that nearly half (47%) of respondents believe the U.S. economy has severely impacted their mental health. Among those who faced financial hardships in the past year, the effects were significant:
- 40% reported feelings of depression
- 17% experienced stress leading to physical health problems
- 16% saw an impact on their relationships or marriages
- 12% gained a lot of weight
- 12% relied on alcohol or drugs to cope
- 9% had suicidal thoughts
Moreover, 59% of the respondents agreed that the American economy does not support small businesses currently. The financial challenges have led many to consider extreme measures to save their businesses, such as going into credit card debt (26%), taking out a second mortgage (8%), and, notably among Gen Z respondents, considering illegal activities (17%).
Late invoice payments have further compounded these issues. Of the 76% who experienced late payments, many faced severe consequences:
- 21% had to create more credit card debt
- 20% delayed payments for their business
- 25% held off reinvesting in their business
- 17% couldn’t buy household items like groceries
- 12% took on new debt to make ends meet
- 10% couldn’t pay rent or a mortgage
“Delaying an invoice payment may seem like no big deal, but for SMB owners, it’s everything,” said Petr Marek, Co-Founder and CEO of Invoice Home. “Late payments can mean the difference between being able to put food on the table and enduring damaging mental and physical stress. 40% of our respondents feel they cannot afford digital tools to support their business right now; tools that could make payments quicker and easier. Cost-effective invoicing solutions are critical to the current health and growth of small business in the U.S.”
The survey also highlighted that younger business owners, particularly Millennials and Gen Z, are facing the brunt of these financial hardships. Over the past year, 52% of Millennial and Gen Z small business owners reported feeling depressed. These groups also turned to alcohol and drugs more frequently, with 20% of Millennials and 29% of Gen Z respondents relying on substances to cope with financial stress. Many of these young entrepreneurs have made significant sacrifices to keep their businesses afloat.
The “State of Small Business Mental Health” survey by Invoice Home paints a concerning picture of the mental health struggles faced by small business owners. Financial stress, late payments, and a lack of support from the economy are major factors contributing to depression and anxiety among these entrepreneurs. Addressing these issues requires a collective effort from policymakers, business organizations, and the community to provide better support and resources for small business owners.
Image: Depositphotos
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