Interest rates are rising to slow inflation, but they’re hitting small businesses hard. They’re more susceptible to interest rate changes than large corporations because they have smaller cash reserves. High Interest Rates on Small Business Owners.

Lindsay Bryan-Podvin, a social worker turned financial therapist, reports that Gen Xers in particular say money worries are affecting their mental health.

Stress

Stress is an important part of the human survival and evolutionary process. But when it’s persistent and chronic, it can have a negative impact on our mental health.

When a person experiences stress, their brain sends signals to the body to prepare for an emergency. Whether it’s the fight-or-flight response or slamming on the brakes to avoid an accident, this response helps us survive dangerous situations and protects against illness and injury.

This is especially true for small business owners, freelancers and self-employed people. It’s not uncommon for them to experience anxiety, depression or burnout during periods of uncertainty. Fortunately, there are several ways business owners can address these issues to improve their mental health. Taking steps like prioritizing their mental health, seeking support from a therapist and engaging in self-care can help them overcome these challenges. By taking care of their mental health, they can safeguard their businesses and ensure they’re able to continue to thrive in 2023 and beyond.

Depression

Depression is a common mental health issue that can have serious consequences for individuals and society. It can lead to a variety of problems, including loss of productivity, isolation, deteriorating relationships, and even suicide. Mental health problems also carry societal costs, such as homelessness and incarceration.

A growing body of research shows that access to affordable treatment increases the take-up of mental health services and reduces stressors associated with mental illness.

During the COVID-19 pandemic, business owners have been under a lot of pressure. Whether it was dealing with the pandemic lockdowns or worrying about their financial security, many small business owners have suffered from poor mental health. And it’s time we address that. The long-term impact of mental health on small businesses is significant and can have a lasting effect on their success. If you’re struggling with anxiety or depression, Silver Lining offers free hotlines for business owners.

Anxiety

If you’re a small business owner, sleepless nights are just part of the job. But when those anxieties start to impact your work life, personal relationships and overall health, it may be time to seek help.

According to a survey from MYOB, nearly half of all small business operators say that running their own business has contributed to anxiety or depression. Inflation and money worries topped the list of reasons for these concerns. Inflation/rising prices disproportionately impacted women, who face wage disparities and caregiving responsibilities that make it harder to maintain financial well-being (see this story).

Cherlette McCoullough, PLMFT, a family and couple therapist at Center Peace Couples and Family Therapy in Florida, says her clients often have a high tolerance for stress but are struggling with anxiety over their business’s performance. She also sees many of these clients miss important social events and organizations they belong to, affecting their relationships with their loved ones.

Low Self-Esteem

Low self-esteem may develop due to a lack of positive experiences or a negative interpretation of a person’s life experience. People with low self-esteem feel unworthy, inadequate and incapable of success and often have trouble in relationships with others.

They can have difficulty in establishing healthy boundaries, which may result in them becoming passive-aggressive and unable to express their feelings or needs clearly. They might also struggle at work because they believe that they are not good enough and have a hard time coping with setbacks.

A person with low self-esteem might experience anxiety and other symptoms such as irritability, problems breathing, heart palpitations and even depression (Lathabhavan, 2020). To combat these issues, a person can practice a variety of strategies. For example, they can pay attention to “micro clues” such as snapping at a loved one or co-worker, which are signals that they are struggling mentally and should reach out for support. They can also try to identify their negative inner critic and rebut it by replacing the thoughts with positive ones needs read more hear.