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Restaurant owners among small businesses facing mental health crisis

Australia’s small business owners are experiencing alarming rates of mental illness with new data highlighting the issues.

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Australia’s small business owners, which include restaurant owners and operators, are experiencing alarming rates of mental illness, with new data revealing they face significantly higher levels of stress, depression and anxiety than the general population.

The findings have prompted calls for urgent government action to provide tailored mental health support for the sector, which employs almost half of Australia’s private workforce.

A new policy brief released by the Wellbeing and Prevention Coalition in Mental Health and the Council of Small Business Organisations Australia (COSBOA) highlights how small business operators are struggling with unique pressures that create a perfect storm for mental health issues.

Beyond Blue CEO Georgie Harman said poor mental health is costing the Australian economy up to $220 billion annually.

“Small business owners are the backbone of our economy, and they should be looked after,” Harman said. “Solutions must focus on prevention and early support to decrease the prevalence and impact of mental illness within the small business sector so that people don’t reach crisis point with their business or their mental health.”

For restaurant owners, the challenges are particularly acute. The industry’s long hours, financial pressures, staff shortages, and isolation, combined with limited access to mental health resources, create the conditions for burnout and mental health crises.

COSBOA CEO Luke Achterstraat said many small business owners find mental health support “difficult to find and afford” and are generally unaware of available programs and services.

“We need to meet them where they are,” he said, emphasising that restaurant owners and other small business operators need support delivered through “trusted and familiar channels.”

The coalition is urging all levels of government to prioritise small business mental health by embedding business owners’ voices in policy development, increasing funding for evidence-based programs, and ensuring national consistency in support approaches.

Several programs already exist, including Beyond Blue’s free NewAccess for Small Business Owners program, which provides up to eight free confidential coaching sessions without requiring a GP referral, and Everymind’s Ahead for Business digital platform.

The crisis comes as restaurant operators continue to face unprecedented challenges, including rising costs, labour shortages, and changing consumer behaviour following the pandemic.

For support, Beyond Blue is available 24/7 on 1300 22 4636 or visit beyondblue.org.au/getsupport

The Small Business Debt Helpline is available on 1800 413 828.

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