Gugulethu MaqetukaStarting out in business is a daunting task for anybody in SA today, and anywhere else for that matter, especially in the economic climate of low growth and increasing inflation. The cost of starting and running a business successfully, and accessing finance and customers, are the biggest challenges any budding entrepreneur faces.
Studies have shown that most entrepreneurs suffer from some form of mental health issue, especially in the nascent years of their businesses. According to a study done in 2020 at the University of California , 72% of entrepreneurs taking part were found to suffer from mental health issues. These vary from stress to anxiety, depression and many others and contribute to a higher suicide rate among entrepreneurs, mental breakdown and, by extension, business failure.
Much blame has been laid at the door of the Covid-19 pandemic, which has disrupted economic activity in the past two years. However, this is not the complete picture. Not enough has been said about the role psychological factors play in preventing young people from achieving success in business ventures.A study released in 2020 by Stats SA painted a dark picture about the state of youth mental health, showing that 20% between 13 and 18 years old live with a mental condition.
While this might fill a void in the short term, in the long term such demonstrations of extravagance can come at the expense of one’s mental health. Research shows that many companies have gone bust in their first year of operation due to uncontrolled spending on the part of the owners. Most of it is recorded as marketing spend, but when you drill deeper much can be considered unnecessary.