Small business, big responsibility: How prioritizing mental health can boost success

May is Small Business Success Month—a month to celebrate the tenacity and hard work of small business owners in the US. But May also marks an equally important celebration: Mental Health Awareness Month—a time to recognize the importance of mental health and wellness for all. For small business owners, it’s no coincidence that these celebrations occur at the same time. Business success and mental health are often two sides of the same coin.

According to data insights from a recent Small Business Success Month survey commissioned by Intuit QuickBooks, business owners of growing or stable businesses are more likely to report better mental health: 66% of small business owners who say their business is either growing or stable say their mental health is in a good or great place, compared to 36% of those who are in survival mode or facing closure.

And it goes both ways. Small business owners who report positive mental wellness are more likely to own growing businesses: more than 7 in 10 small business owners who say they’re in a good or great place mentally also say their business is growing, compared to 38% of those who are feeling stressed and anxious or burned out.

But there’s more to the story than this (granted, somewhat obvious) correlation between happiness and success. The same survey found that, despite hardships, the majority (77%) of small business owners believe their business is a significant contributor to their overall happiness. Even those with struggling businesses (stagnant, in survival mode, or facing closure) would agree: 63% of these business owners still believe their business is a source of happiness.

Read on for a closer look at the state of mental wellness for small business owners in 2024, what impacts their happiness, and how they plan to prioritize mental health for small business success this year.

Jump to:

• How small business owners find joy and motivation amid challenges
• Small business owners say getting more sleep would alleviate stress
• Taking time off is key to mental wellness for small business owners
• Sample and methodology

Small business owners find joy in the ups and downs of business ownership

For many, entrepreneurship is a journey of satisfaction and stress happening in parallel. While the majority of small business owners (88%) rate their overall satisfaction as medium or high, a comparable amount (76%) say they still feel a medium or high amount of stress.

And although 62% of small business owners say they’re in a good or great place mentally, nearly 1 in 5 (17%) say they consistently feel anxious, burned out, and exhausted. The majority (68%) say their mental health has improved since becoming a small business owner, but another 15% say it’s gotten worse since taking on an entrepreneurial role.

As with everything, being a small business owner comes with pros and cons. Over half (54%) of survey respondents say they started their own business to be their own boss—but being the boss comes with added stress and responsibility.

Others say they started their business to make better money (55%). And for some, this might be true: 4 in 10 say they’ll be able to pay themselves at least $100,000 this year. But just as many say they’ll pay themselves less than the median US wage of $62,000 (as reported by the US Bureau of Labor Statistics, BLS).

Across the board, no matter what their financial situation, nearly half of all small business owners (48%) say worrying about their business keeps them up at night—specifically thinking about inflation, cash flow challenges, and paying off debts—while another 43% say worries about their personal finances prevent them from getting enough shut-eye.

These worries aren’t unfounded. More than 20% of small businesses fail within the first year, according to the BLS (as reported by the US Chamber of Commerce), and 81% of survey respondents who have previously started a small business say that business closed or failed for various reasons—the most common being inflation challenges, cash flow challenges, and personal hardships. The very things that keep small business owners up at night. But here’s the good news: for 84% of those business owners, that “failure” was a motivation to give entrepreneurship another try—and succeed.

Small business owners say getting more sleep would alleviate stress and improve their mental health

Nearly 6 in 10 small business owners say getting a good night’s sleep is the key to maintaining good mental health—and 43% who report feeling stressed say getting more or better sleep would help alleviate that stress. But how much sleep are small business owners getting?

While 3 in 10 say they’re sleeping less than before they started their business, another 3 in 10 say they’re sleeping more. As for the amount of sleep, according to the Sleep Foundation, adults need at least 7 hours of sleep to maintain physical and mental wellness. The good news is small business owners surveyed report getting an average of 7 hours of sleep each night—right on track with the recommended amount. However, they’re still getting less sleep than the average person, who (according to the US Bureau of Labor Statistics) clocks 9 hours of sleep each night.

More than 4 in 10 small business owners say they’re getting less than the recommended 7 hours of shut-eye, and they’re feeling the repercussions. Small business owners who report getting less than 7 hours of sleep each night are less likely to describe their mental health as “good” or “great” than those who get a solid 7 hours or more. Only 17% of those who get less sleep say they’re in a great place mentally, compared to 30% who get at least the recommended amount.

Across the board, no matter how much sleep they get, less than half of small business owners (44%) say the amount of sleep they get most nights is enough. The other 56% are running on less sleep than they’d like, at least some of the time, and 1 in 5 say they never feel like they get enough sleep.

Not getting enough sleep can contribute to mental health issues like depression and anxiety, and interfere with your ability to manage stress. For small business owners surveyed, sleep deprivation correlates with lower business growth. Small business owners who typically get less than 7 hours of sleep are less likely to report business growth than those who get the recommended amount or more.

But what comes first—sleep or success? It’s a bit of a chicken and egg scenario: small business owners with thriving businesses might have fewer business concerns keeping them awake at night. Or maybe consistently getting enough sleep gives them the brainpower to problem solve—allowing them to make stronger business decisions.

Time off is key to prioritizing mental health, but only 1 in 4 small business owners take time off when they need to

Over half of small business owners surveyed (58%) say spending time with loved ones is important for maintaining good mental health. And 4 in 10 who feel stressed say spending more time with family, friends, and pets would help alleviate that stress.

And yet, only 1 in 4 small business owners say they always take time away from their business when they want or need to. The majority (73%) say they don’t take time off because they feel anxious when they’re away from their business, can’t afford to take time off, or think their business simply can’t run without them.

These business owners may lack a support system. More than a quarter of respondents say they don’t have any trusted team members to oversee the business while they take vital time off, for mental health purposes or otherwise. Nearly half (48%) say they have just one person they trust to keep the business in motion while they’re away.

As a result, more than half of small business owners say they take less than two weeks off per year. The average US worker takes 17.4 days of paid time off each year, according to the US Travel Association. Small business owners surveyed take an average of 14.7 days—nearly 3 days less.

However, survey insights reveal that taking time off has a measurable impact on stress for small business owners. Only 19% of those who say they always take time off when they need or want to rate their stress as “high,” but this jumps to 31% for those who don’t feel comfortable taking time away from work.

Sample and methodology

From April 12 to 15, 2024, Intuit QuickBooks commissioned an online survey of 1,969 US small business owners, all over the age of 18, with 0-100 employees. The survey focused on small business success and failure among five cohorts of respondents who identified themselves as small business owners with 1-100 employees (n=924); small business owners with no employees (n=375); and side hustlers who combine W2 and 1099 income by running a small business on the side of their day job (n=670). Overall, 58% of the respondents were male while 42% were female; 20% were Gen Z (ages 18-27), 58% were Millennial (ages 28-43), 18% were Gen X (ages 44-59), and 4% were Baby Boomers (ages 60-85).

Percentages have been rounded to the nearest decimal place so values shown in charts and graphics may not add up to 100%. Responses were collected using Pollfish audience pools and partner networks with double opt-ins, random device engagement sampling, and post-stratification based on census data to ensure accurate targeting and results. Respondents received remuneration. Data insights reflect the opinions of the business owners surveyed and do not reflect Intuit or its affiliates' opinions on the matter.

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