The Federal Reserve recently raised interest rates to help combat inflation and keep the economy growing. But, higher rates can impact your business in a number of ways. Health Impact of High Interest Rates on Small Business Owners.
Among our convenience sample of entrepreneurs, nearly half reported having a personal mental health history. We also surveyed their first-degree relatives to assess family psychiatric history. Health Impact of High Interest Rates on Small Business Owners.
1. Increased Stress
The increased stress that results from high interest rates can be very detrimental to a small business owner’s mental health. Stress,
As interest rates rise, small business owners will find it harder to balance cash flow with monthly payments. This can be very difficult for a small business to handle and can ultimately result in bankruptcy.
2. Decreased Self-Esteem
If you’re constantly worried about money, it’s likely that your self-esteem has decreased. Low self-esteem can lead to an inability to form healthy, supportive relationships or to set firm personal boundaries. Many people with low self-esteem try to compensate by seeking approval from others, which can lead to toxic and codependent relationships.
Research has found that a person’s ability to handle financial stress is tied directly to their level of self-esteem. Even thinking about financial insecurity can cause pain, and those who experience high levels of stress are more likely to develop mental health problems.
3. Increased Mood Disorders
A lack of money can cause a wide variety of emotional responses. From anxiety and depression to a loss of self-esteem, many people suffer from symptoms that can be debilitating.
The study relied on participants to self-report their family’s history of ADHD, substance use disorders, bipolar disorder, and depression. Self-report instruments are prone to false-positive results.
4. Increased Anxiety
One of the most obvious impacts of high interest rates on small business owners is the increased anxiety that comes along with them.
These symptoms can be extremely disruptive and cause serious damage to a person’s well-being.
The financial worries of a small business owner can even have long-term negative effects on their personal relationships. Cherlette McCoullough, PLMFT (provisional licensed marriage and family therapist) at Center Peace Couples and Family Therapy in Florida explains that her clients who struggle with work-life balance often end up missing family engagements and other social activities needs read more hear.
