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Research reveals business finances are the biggest source of stress for over 75% of digital entrepreneurs
Working parents face additional invisible burdens, including increased stress levels and difficulty qualifying for loans.
TORONTO, Feb. 29, 2024 (GLOBE NEWSWIRE) — wave, a one-stop cash management solution for small businesses, today announced the results of a study examining the mental health and well-being of digital entrepreneurs in the United States. The study found that this subset of business owners, including those with fewer than 10 employees, connect with prospects and customers primarily through online channels, ranging from financial struggles to impostor syndrome. It turns out that they face multiple barriers to their mental health. burden on working parents.
The biggest contributor to mental health and stress levels is business finances (57%), followed by personal/family issues (49%) and work/life balance (47%). Access to funding (grants, loans, lines of credit, etc.) was the biggest source of financial stress among respondents, with 62% of business owners saying they had been turned down for funding. .Recent report The Economic Opportunity Institute paper cites systemic problems in the ability of small businesses to secure grants and loans, pointing out that access to capital is a major barrier to success. While grant programs can help address funding gaps, community support and guidance are also key to helping small businesses succeed.
The results also show that there is an inseparable link between respondents’ personal identity and work, with the majority (87%) believing that their personal self-worth is tied to their business success. It states that
The findings demonstrate the need for solutions from both businesses and the community.and 1 in 4 people around the world Contribute to the rapidly growing creator economy and record-breaking contributions. 5.4 million new businesses Given the number of small businesses that will be founded in the U.S. alone in 2023 (a 56.7% increase compared to the number of new businesses founded in 2019), the mental health of small business owners will depend on more than just business success. It is also important for our ability to contribute positively to the overall economy.
“Digital entrepreneurs, including the burgeoning class of creators, are a unique segment of the small business economy, managing all aspects of business ownership while cultivating and monetizing their skills,” says Wave. CEO Zahir Khoja said. “Our research highlights stressors that impact their well-being, many of which are invisible to the outside world. It is essential that we focus on fostering a healthier and more sustainable generation of creators.”
Notable findings include:
- Economic crisis is at the top of the list. More than 75% of those surveyed feel stressed, especially with their business’ finances. Almost one in five respondents (18%) say being denied a banking product or loan by a financial institution has made them feel like they are not a “real” business owner. Did.
- Economic conditions dictate pricing. The majority of respondents (86%) are concerned about the state of the economy, with more than half (56%) expecting to have to increase prices due to inflation.
- Pressure to succeed leads to loneliness and impostor syndrome. Comparisons with others, pressure to achieve overnight success, and common stereotypes about entrepreneurs such as “superhumans,” “bosses,” and “hustlers” can lead to a lack of confidence in one’s abilities and talents. This is the biggest cause. Additionally, most respondents (60%) report feeling lonely or isolated at least some of the time as business owners. Among people who say they feel lonely or isolated most of the time, nearly seven in 10 (69%) find themselves using a device for work outside of their preferred hours each day. I did.
- Working parents suffer the most. Working parents feel more stressed about the financial aspects of their business than parents without children. In fact, 43% of working mothers report feeling very or extremely stressed, compared to 34% of working fathers and 29% of business owners without children. Working mothers in particular were the least likely of all groups to report good mental health (15%).
- AI is seen as a driver of efficiency. The majority of respondents (74%) see artificial intelligence as an opportunity to improve their business. Increased productivity (44%), reduced time spent on manual tasks (41%), and the ability to automate manual tasks (40%) are the main factors contributing to optimism. However, this optimism is not without concerns, with the top concerns being infringing on someone else’s copyright (33%) and compromising the quality of the work (31%).
Technology, funding and community support are key to empowering entrepreneurs
Wave’s one-stop money management platform provides small businesses with tools specifically designed for solopreneurs, creators, freelancers, and more. In May 2023, Wave will partner with the Shorty Awards to present the inaugural Elevate Creative Fund; Aimed to inspire creative entrepreneurship through a US$120,000 grant, which was recently distributed to six recipients, including Alison Stoner, founder of . genius of movement.
“Given the worsening mental health crisis among entrepreneurs, shining a light on the struggles small business owners face is an important first step,” said Movement Genius Founder and Director. CEO Alison Stoner said. “I founded Movement Genius to address the mental health crisis by creating solutions for people with the highest indicators of stress and suffering, including small business owners. As a family, I needed to start my own company on my own and find a way to make money in a creative way. Grant programs offered by companies like Wave can make a meaningful impact and help new businesses start. It can alleviate the financial burden that many people feel.*
research method
Practitioner Research scene On behalf of Wave, 1,087 U.S. executives completed a survey from January 22, 2024 to February 4, 2024, answering a number of questions about factors that influence mental health and stress levels . To qualify, respondents had to be majority owners of their businesses, have fewer than 10 employees, and connect with prospects and customers primarily through online channels.
About waves
Wave Financial Inc. (waveapps.com) provides one-stop financial management for small businesses through a suite of tools that work together to support small businesses at every stage of the ownership process, from founding to surviving to thriving. We provide More than 300,000 small businesses use Wave’s comprehensive platform, which includes accounting, billing, payments, and payroll software solutions and advisory services. Wave has won awards recognizing growth, innovation and company culture, including the KPMG Fintech 100, CB Insights Fintech 250, Canadian Innovation Awards (Financial Services), and Canada’s Best Workplaces. Wave is a subsidiary of H&R Block
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Wave media contact:
marsh abraham
PR & Communications Lead
pr@waveapps.com
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