The Emotional Tax That Small Business Owners Pay

The Emotional Tax that small business owners pay
2026-03-04

Running a small business is a 24/7 job, and I see firsthand the incredible heart and spirit entrepreneurs pour into their work. South African entrepreneurs are known for their resilience and unwavering commitment, but that dedication often comes with a hidden cost - losing sleep, missing out on family time, and neglecting hobbies and holidays that help them recharge. This is what we're calling the 'Emotional Tax.'

Xero's Emotional Tax Return report, which surveyed 300 small business owners across South Africa, reveals that a staggering 95% have made significant personal sacrifices to keep their businesses going. More than half (53%) have given up "me-time", over a third have sacrificed social events (36%), and 35% have lost quality time with partners.

Running a business is stressful, but "worth it"
More than a quarter of the working week (11 hours) is spent feeling stressed, concerned, or worried about their business, and 95% have found the current financial year more stressful. Yet this strain is balanced by a deep sense of purpose. South Africans are a nation of doers and builders, and for 60% of those surveyed, the passion for what they do means the stress is worth it.

In fact, some see it less of a 'tax' and more of an investment. Anton Louw, founder of Sunbird Rooibos, says: "To me, the emotional input into a business is part of the investment you make, just like your time or your savings. It definitely feels 'emotionally taxing' some days, but 'emotional investment' is how I'd put it. Like all investments, the trick is to maximise your return."

He suggests working out what you can control and not worrying about what you can't. "Time management is key. Focus on spending more time on what benefits you most in the long run."

The link between well-being and the bottom line
The "always-on" nature of running a small business has a knock-on effect on rest and energy levels that affects business performance. More than three quarters (77%) of entrepreneurs report getting less sleep since starting their business, with 50% turning to overworking or late nights.

It's impossible to perform at your peak when stress takes over, it affects the skills entrepreneurs need to succeed, meaning the business suffers. Those surveyed told us high stress leads to missed opportunities (36%), slower decision-making (36%) and avoidable mistakes (34%).

To counter this, we need to move from reactive survival to proactive wellbeing strategies. Clinical Psychologist, Dr Marc Rogatschnig, suggests business owners are making sacrifices that we know aren't sustainable in the long term, and that stress shouldn't be the default setting for success.

"As an antidote to the 'emotional tax,' entrepreneurs need to explore the route towards a 'flourishing' life. Actively prioritising the pursuit of meaning, life satisfaction, wellbeing, and healthy relationships to protect against emotional burnout and ensure sacrifices don't lead to resentment, poor health, damaged relationships or a dependence on ever-fast dopamine hits."

Automating the "grunt work"
There are practical strategies that can help small businesses protect their mental health and well-being. This includes setting boundaries around work hours and crucially using digital tools to handle the manual, time-consuming tasks.

Anton agrees that streamlined systems are the first line of defense. "Urgent problems will occur, but having systems to run regular procedures means they are smaller and less frequent. Xero simplifies the books into a colourful picture, allowing me to apply my core skills better in building the business."

Author: Colin Timmis, Regional Director EMEA at Xero
Published: 23 Feb
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The Emotional Tax That Small Business Owners Pay

The Emotional Tax that small business owners pay 2026-03-04

The Emotional Tax that small business owners pay
2026-03-04