REPORT: 2 in 5 U.S. SMB Owners Experienced Feelings of Depression in the Last Year

Findings from Invoice Home report the mental health of freelancers, contractors, entrepreneurs and SMB owners is deteriorating due to the U.S. economy.

May 21, 2024, AUSTIN – Invoice Home, a leading invoice generating software designed for the invoicing needs of small businesses, freelancers, and entrepreneurs worldwide, today released its “State of Small Business Mental Health” Survey, revealing the impact financial hardships have had on American SMB owners’ mental health and the desperate measures people are willing to take to save a business. Conducted with third-party research firm Censuswide, data also shows Gen Z and Millennial respondents are severely impacted, reporting depression, alcohol/drugs usage, physical health problems and more due to the implications today’s U.S. economy has had on small business.

The mental and physical suffering of SMB owners is alarming

Inflation and the cost-of-living has forced SMB owners to make difficult decisions that have had a direct impact on health. Nearly half (47%) of respondents agree the U.S. economy has severely impacted their mental health and those who experienced financial hardships in the last year, reported:

• Feelings of depression (40%)
• Stress that led to physical health problems (17%)
• An impact on their relationship/marriage (16%)
• Gaining a lot of weight (12%)
• Relying on alcohol and/or drugs to get through (12%)
• Suicidal thoughts (9%)

59 percent agree the American economy does not support SMBs right now. The financial hardships in the last year have people willing to consider great lengths to save a business, if encountered in the next 12 months, such as going into credit card debt (26%), putting a second mortgage on a home (8%), and for Gen Z respondents, doing something illegal/they shouldn’t (17%).

Late invoice payments have had a significant impact

Of the 76% that have experienced late invoice payments, 21% had to create more credit card debt, 20% delayed payments for their business, 25% held off on putting money back into the business. 17% couldn’t buy household items like groceries, 12% had to take out new debt to make ends meet and 10% couldn’t pay rent/a mortgage.

“Delaying an invoice payment may seem like no big deal, but for SMB owners, it’s everything,” said Petr Marek, Co-Founder and CEO at Invoice Home. “Late payments can mean the difference in someone being able to put food on the table that week, and the mental and physical stress that comes along with that is damaging. 40% of our respondents feel they cannot afford digital tools to support their business right now; tools that could make payments quicker and easier. Cost-effective invoicing solutions are critical to the current health and growth of small business in the U.S.”

Gen Z and Millennial SMB owners are giving up everything

The youngest entrepreneurs are being hit hard – due to financial hardships in the last year, 52% of Millennial and Gen Z SMB owners report feeling depressed. These groups also relied on alcohol and/or drugs to get through the financial hardships, as reported by Millennials (20%) and Gen Z (29%). In the last 12 months these two groups even had to give up the following to financially support a business: