Canadian small business owners lose 31 working days of productivity to stress annually

Toronto, ON — February 12, 2026 —Xero, the global small business platform, today released its Emotional Tax Return report, revealing a startling productivity crisis: Canadian small business owners lose an average of 31 working days annually due to stress.

The report found that Canadian small business owners spend an average of nine hours a week feeling stressed, concerned or worried about their business. Financial management in particular is a pressure point for over three quarters (77%) of small businesses, prompting two in five (39%) to consider giving up their businesses entirely.

The “Emotional Tax”

Running a small business is a 24/7 job. It has financial costs, but its always-on nature also comes with an added “Emotional Tax”, which can translate into lost sleep, personal sacrifices and negative impacts on small business owners’ relationships.

The data breaks down the personal toll of this tax:

• Sleep deprivation: Over half (52%) of small business owners report getting less sleep since starting their business, with nearly a quarter (23%) losing five or more hours a night.
• Sacrificing self-care: Stress has also caused small business owners to give up hobbies and self-care—like exercise (32%), travel (30%) and quality time with their partners (26%).
• Missing life moments: Many miss out on important life events like family dinners (15%), birthday parties (12%), and weddings (7%).
• Strained relationships: Two-fifths (40%) of small business owners have kept their business stress from their family or partner, and more than a third (36%) report being more short-tempered with others when stressed.

The business impact of stress

On top of the personal and emotional impacts of stress on owners, stress can have major repercussions for the business itself. As a result of stress, small business owners reported: slower decision-making (33%), missed opportunities (29%), slower business growth (22%), and avoidable mistakes (21%), including financial errors.

“The Emotional Tax small business owners pay clearly takes a heavy personal toll, and when it consumes nearly a month of productivity, it also becomes a bottom-line crisis. Unfortunately, too many owners are trying to navigate this pressure in isolation,” said Ashalee Mohamed, Head of Canada GTM, Xero. “Leaning into digital tools and trusted advisors is the key to closing this gap, protecting business health and reclaiming their quality of life. By reducing business admin, enabling accounting automation and streamlining collaboration with advisors, Xero can help small business owners improve confidence in financial accuracy and reclaim the emotional tax.”

The Advisor Gap

External environmental factors, including rising costs, unpredictable demand and geopolitical uncertainty, have made small business ownership more stressful than in previous years, leaving the vast majority of owners (90%) concerned about the upcoming fiscal year.

However, most Canadian small business owners continue to struggle in silence. While more than three-quarters (77%) of small business owners report that financial management causes stress, only 10% seek advice from an advisor when they feel the pressure, leaving them exposed to costly mistakes and tax shock.

The data also identified an interesting cycle small business owners experience: over half (53%) have been surprised by a tax outcome, and yet, many small business owners’ stress leads them to put off financial management. In fact, one in ten (11%) would prefer to go to the dentist for a root canal than tackle their taxes. As a result of stress from chasing paperwork (34%) or fear of making a mistake (28%), many small business owners are forced into inaction, with almost a third (29%) experiencing stress-caused procrastination.

Turning the Corner

Fortunately, most small business owners (92%) are already taking steps to manage their stress. More than half turn to self-care (52%), exercise (44%) or spending time with friends and family (41%), and with the right support, small business owners can greatly reduce financial fears.

Explore the full insights and data by reading the Xero Emotional Tax Return Report here. 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.

ENDS

Media Contact

Xero Canada | Rola Tfaili | rola.tfaili@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.