Rising Mental Health Challenges for Entrepreneurs
In early 2023, 45% of entrepreneurs reported facing mental health challenges, a significant increase from previous years, according to a survey by the Business Development Bank of Canada (BDC). Small business owners face unique pressures that are not typically experienced by the average worker. Six years ago, Rhiannon Rosalind, while managing the Economic Club of Canada and raising young children, was silently battling these pressures, masking her struggles with productivity and alcohol.
A near-death experience during a trip with the Junior Economic Club in Nunavut became a turning point for Rosalind, prompting her to prioritize her mental health. Reflecting on her journey, she noted, “I’d been extremely successful very young and grew up with a lot of trauma, and… struggled with alcohol, overworking, all of these things to try to keep myself straight and steady.” This wake-up call led her to establish Conscious Economics, a national non-profit focused on promoting mental health and sustainability in entrepreneurship.
The Broad Impact on Small Business Owners
The challenges faced by Rosalind are not unique. The BDC’s May survey revealed that 45% of Canadian business owners experienced mental health issues, up from 38% in February 2022. Additionally, 31% of entrepreneurs expressed a desire to seek professional help, a notable increase from 21% the previous year. The past three years have been particularly tough, with entrepreneurs navigating pandemic lockdowns, labor shortages, supply chain disruptions, inflation, and rising interest rates.
Historically, mental health issues have been prevalent among entrepreneurs. A 2019 study by the Canadian Mental Health Association and BDC found that nearly half of small business owners experienced low moods or felt mentally exhausted at least once a week, with three out of five reporting feelings of depression. These mental health struggles often stem from business-related stressors such as cash flow issues, talent acquisition, and the pressure to meet high expectations. These challenges can significantly impact their work-life balance, concentration, and professional relationships.
Seeking Help and Moving Forward
Despite the stigma associated with mental health struggles, there is a growing trend among entrepreneurs to seek help. The BDC found that business owners, particularly those aged 45 and younger, are increasingly reaching out to professionals for support. Annie Marsolais, BDC’s chief marketing officer and advocate for mental health awareness, emphasized, “There’s stigma associated with entrepreneurs — that they’re superhuman, that they have no weaknesses — but in raising awareness we’ve seen them seeking professional help.”
To further support entrepreneurs, BDC is launching a pilot program in early 2024 to provide free virtual therapy sessions to its clients. This initiative aims to address the mental health needs of business owners, helping them manage stress and build a sustainable work-life balance. Entrepreneurs are also encouraged to adopt self-regulation strategies, such as prioritizing sleep, maintaining close relationships, taking regular breaks, and staying physically active, to maintain their mental well-being.
Rosalind’s transformation underscores the potential for positive change. After returning from the Arctic, she sought therapy and stopped drinking, leading to significant improvements in her personal and professional life. Her new venture, Conscious Economics, reflects her commitment to fostering a healthier approach to entrepreneurship. “We can build something that is infinitely better and healthier,” she said. “I know that, I believe that, because I’ve built new systems in my own life.”