Invisible struggles: Why entrepreneur mental health deserves urgent attention in South Africa

South Africa has made strides in advancing mental health awareness, with government, schools, corporate wellness programmes, civil society organizations/and NGOs have made it a national priority. However, South Africa’s entrepreneurial community remain unsupported. Entrepreneurs bear disproportionate emotional burdens. For instance, a 2015 Berkeley University study found that 72 % of entrepreneurs reported experiencing mental health challenges, nearly half had formally diagnosed conditions like depression, ADHD, bipolar disorder, or substance-related issues. Meanwhile, there is no recent South African data that speaks to the invisible struggles entrepreneurs face and how these conditions, amplify stress, isolation and burnout.

The 2025 South African MSME Access to Finance Report reveals that micro-enterprises businesses with turnovers under R1 million generate over 80 % of MSME jobs and account for nearly 86 % of funding requests yet face systemic rejection due to outdated credit models and poor financial documentation. Nearly 39 % of these businesses seek small loans under R250 000 and another 31 % ask for between R250 000 and R1 million modest sums that are crucial for survival but frequently denied. Yet amidst these challenges, have we stopped to ask ourselves what support this vital community needs in support to wake up and face another day?

Compounding these mental health struggles are deep structural obstacles. Indeed, the report details that fewer than one in four small businesses maintain formal financial statements, and over 80 % operate without payroll systems. The mental toll of repeated funding rejection, cash-flow instability, and lack of access to basic accounting, payroll, or legal infrastructure is enormous.

These operational deficiencies not only impede funding but also add layers of stress, as business owners wrestle with compliance, employee management, and legal obligations often alone and unsupported. Essentially, entrepreneurs often lack investment readiness due to a lack of formal finance training and a lack of systems and mindset that are tailored to their capacity needs.

It is, therefore, clear that entrepreneurs facing constant financial pressure suffer higher rates of mental health issues, which in turn erode business performance, weaken decision-making, and strain personal relationships. This convergence of financial hardship and operational chaos drives a powerful feedback loop: When founders cannot emotionally unplug, families absorb the stress, relationships fray, home life struggles, and loneliness deepens.

The 2025 South African MSME Access to Finance Report points to hopeful solutions: reform credit-scoring through open finance and alternative data, partner banks and FinTech to streamline micro-loans, revive credit guarantee schemes, and strengthen support for recordkeeping and digital tools.

Using these digital tools isn’t a luxury; it's a critical buffer that protects mental bandwidth and strengthens business governance. These systemic shifts don’t just unlock capital they also alleviate existential stress by imposing structure, clarity, and autonomy in business operations. In effect, adopting robust HR, payroll, accounting, and legal platforms becomes more than administrative convenience it becomes mental health infrastructure. Entrepreneurs equipped with systems can step off the treadmill of panic and unpredictable crises. They can plan, delegate, comply, and focus on strategy rather than firefighting. Such clarity reduces burnout, improves performance, and restores space for personal wellbeing and healthy relationships.

Aligning finance reform with mentalhealth awareness creates a powerful synergy. When entrepreneurs have access to suitable financial instruments and the operational tools to manage them, they are less likely to face anxiety, exhaustion, and isolation. They become more resilient, adaptable, and sustainable not just economically, but emotionally too. This narrative highlights the intimate link between mental health, financial exclusion, and the value of well-designed operational infrastructure for entrepreneurs.

In 2025, Entrepreneurial Wellbeing becomes critical to sustaining and improving SMEs' competitive advantage. Ultimately the newly released survey on South African Entrepreneurial Wellbeing by Old Mutual SMEgo can become a transformative moment. It must highlight that mental health and operational readiness are two sides of the same coin. By building ecosystems that support both through finance, tools, and structural resilience we not only empower small business growth but also safeguard the hearts and minds of those who lead them.

Nobesuthu Ndlovu, Director SME: Old Mutual Corporate

BUSINESS REPORT