Nearly half of Kiwi small business have considered giving up their venture due to stress

Wellington — 12 February, 2026 — Xero, the global small business platform, today released its Emotional Tax Return (ETR) research, uncovering the significant toll running a small business can take on the wellbeing and productivity of small business owners across Aotearoa New Zealand.

Three quarters (75%) of Kiwi small business owners said the current financial year has been more stressful than past years, citing rising costs (48%) and unpredictable demand (30%).

Nearly half (47%) of respondents had considered giving up their business due to stress, with 67% citing financial management as a stressor.

Bridget Snelling, Country Manager – Aotearoa New Zealand at Xero, said the results reinforce the confronting realities of running a small business.

“Running a small business is hard work and business owners often have to make significant sacrifices - missing a child’s swimming sports or working all hours and not getting enough sleep. This is what we call an emotional tax — the hidden personal costs small businesses owners have to pay every year,” says Snelling.

“When everything rests on your shoulders, stress doesn’t stay at work — it compromises your time, focus and confidence. The end of the financial year amplifies this pressure, and for too many small business owners, this time is a source of dread rather than clarity.”

End of financial year stress stings

The end of the financial year amplifies stress, with almost half (42%) of small business owners saying they found this period more stressful than the rest of the year.

More than a third of respondents (34%) needed to chase paperwork, while 31% worried about making mistakes. Most notably, 54% had been surprised by a tax outcome, with the majority of these being negative.

“We know the end of the financial year can sometimes sneak up on business owners who are so invested in the day-to-day doing of the work,” says Snelling.

“Proactivity is crucial to help get on top of this period and avoid any unexpected tax surprises.”

Stress steals productivity — and sleep

On average, stress costs business owners five hours of productive work every week, equating to around 30 working days lost per year, according to the research.

Many owners also felt the impact physically. More than half (55%) said they have had less sleep since starting their business, with 12% losing five or more hours a night.

Yet only 10% seek advice from an accountant or advisor when they’re stressed, leaving many exposed to errors and unexpected outcomes.

“Stress isn’t just a feeling — it slows decision‑making, reduces creativity, and leads to avoidable mistakes,” Snelling said. “It impacts the skills owners rely on to succeed.”

“Small business owners carry so much on their own, and having someone who understands their tax obligations and financial landscape can make a huge difference,” says Snelling.

“Advisors help map out what’s ahead and reduce the chance of unexpected bills. Good advice doesn’t just fix problems — it prevents them.”

According to Xero customer research, small businesses say they save an average of five hours weekly with Xero — with bills creation, payments, and reconciliation handled automatically.

“With the right tools and support, business owners can reclaim time, reduce their emotional tax, and feel more confident heading into EOFY,” Snelling said.

Running a small business can take a toll on mental and emotional wellbeing. Xero encourages any owner who feels they need support to reach out early.

The Mental Health Foundation of New Zealand provides individuals and workplaces with resources, guidance and advice on where to go for help.

Emotional Tax Refund

To give something meaningful back to small business owners across Aotearoa New Zealand — Xero is giving small business owners the chance to reclaim time and moments that matter, from anniversary dinners to long overdue vacations they may have missed over the past financial year.

How to enter:

Share a personal missed moment (for example, a moment work caused you to miss this year — like missed weekends, family moments, leave put on hold etc.) as an Instagram Story and tag @xero for a chance to claim it back.

For more information visit: https://www.xero.com/nz/campaign/emotional-tax-return/

ENDS

Media Contact

Xero Aotearoa New Zealand | Kristen Barrett | +64 22 064 2924 | kristen.barrett@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.