Half of South African small business owners never switch off from work, but 60% say the stress is worth it

Cape Town, 10 February 2026 — Xero, the global small business platform, today revealed that 55% of small business owners can’t ever switch off from work in new research shedding light on the “hidden costs” that influence their wellbeing and productivity. The ‘Emotional Tax Return’ report, based on a survey of 300 South African small business owners, shows 95% are making personal sacrifices to balance demands. This includes giving up “me-time” (53%), and missing out on things like sleep (48%), hobbies (37%) and holidays (30%) that help them relax and recharge.

Highlighting the emotional energy invested by small businesses, 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 strong sense of purpose. Despite the pressure, 60% say the stress is “worth it” and that they would never walk away.

Colin Timmis, Regional Director EMEA at Xero, said: “Running a small business is a 24/7 job but the fact that so many owners think the stress is worth it shows just how much heart and spirit goes into it. But they make many sacrifices, missing important life moments or spending quality time with family and friends. This tension between strain and commitment is an ‘emotional tax’ - the hidden personal costs made each year to see their business succeed.”

Recognising and reducing stress and fatigue

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%) report getting less sleep since starting their business, with 37% losing five or more hours a night. Nearly two thirds (64%) have also reduced or stopped making time for exercise. When stress builds, it becomes even harder for founders and owners to find time for themselves, with 50% turning to overworking or late nights.

Clinical Psychologist Dr Marc Rogatschnig said: "There are signs business owners are operating in survival mode, and tackling threats to their livelihood with a range of sacrifices and personal investments. Many of which we know are ineffective in the long term. 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.”

Reclaiming control and reducing the emotional tax

Positively, 92% of South African business owners are taking steps to manage their wellbeing and combat the weight of daily stressors. Self-care (47%), spending time with family and friends (38%), carving out time for exercise (32%), escaping into entertainment (30%) and practising mindfulness and meditation (30%) are some of the ways that owners try to cope with the pressures.

Nearly a third (30%) are also trying to simplify their operations. Business owners spend an average of 39 hours a month managing their finances, which is effectively a full working week, suggesting many are shouldering unnecessary stress that could be eased through digital tools and closer collaboration with accountants and bookkeepers.

Timmis added: “You shouldn't have to sacrifice your wellbeing to see your business thrive and it’s a relief to see so many are already taking steps to manage their stress - whether it’s through getting outside for a daily walk or making time for a family braai. Reclaiming control with better tools and support is about more than getting to grips with your numbers, it’s about finding ways to reduce that ‘emotional tax’ so you can recharge, reconnect and pour your energy back into the passions that started it all.”

Claim an emotional tax refund with Xero

Xero wants to help small business owners put in an ‘expense claim’ for one of those moments they’ve lost with an ‘Emotional Tax Return’.

To enter, small business owners are invited to share a moment they’ve missed due to the demands of running their business on Instagram Stories and tag @xero for a chance to claim it back in prize money. Competition ends 22 March 2026, terms and conditions apply.

To read the full report and find out more visit: xero.com/za/campaign/emotional-tax-return

ENDS

Methodology

Xero commissioned OnePicture to conduct an online survey with 300 independently recruited South African small business owners with fewer than 200 employees. Data has been weighted to be as representative of the small business market as possible. For more information about the research methodology for this report or to access full data tables including all answer options and question text, please contact consumerinsights@xero.com.

Media Contact

Xero Communications South Africa | Sophie Whitney| sophie.whitney@xero.com

About Xero

Xero is a global small business platform that helps customers supercharge their business by bringing together the most important small business tools, including accounting, payroll and payments — on one platform. Xero’s powerful platform helps customers automate routine tasks, get timely insights, and connects them with their data, their apps, and their accountant or bookkeeper so they can focus on what really matters. Trusted by millions of small businesses and accountants and bookkeepers globally, Xero makes life better for people in small business, their advisors, and communities around the world. For further information, please visit xero.com.