{"id":850345,"date":"2026-02-13T11:30:00","date_gmt":"2026-02-13T09:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=850345"},"modified":"2026-02-13T11:29:58","modified_gmt":"2026-02-13T09:29:58","slug":"the-hidden-tax-hurting-businesses-across-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/850345\/the-hidden-tax-hurting-businesses-across-south-africa\/","title":{"rendered":"The hidden tax hurting businesses across South Africa"},"content":{"rendered":"\n<p>55% of small business owners in South Africa say the &#8220;hidden costs&#8221; of their businesses affect their well-being and productivity. <\/p>\n\n\n\n<p>This is according to research from Xero, which calls these hidden costs &#8220;Emotional Taxes.&#8221; <\/p>\n\n\n\n<p>Its latest \u2018Emotional Tax Return\u2019 report, based on a survey of 300 South African small business owners, showed that 95% are making personal sacrifices to balance demands. <\/p>\n\n\n\n<p>Small business owners often give up me-time (53%), sleep (48%), hobbies (37%), and holidays (30%) that help them relax and recharge.<\/p>\n\n\n\n<p>The emotional energy investment by small businesses means that more than a quarter of the working week (11 hours) is spent feeling stressed, concerned or worried about their business. <\/p>\n\n\n\n<p>95% of small business owners found the current financial year more stressful, even if this strain is balanced by a strong sense of purpose, with 60% stating that the stress is worth it. <\/p>\n\n\n\n<p>\u201cRunning a small business is a 24\/7 job, but the fact that so many owners think the stress is worth it shows just how much heart and spirit go into it,&#8221; said Colin Timmis, Regional Director EMEA at Xero. <\/p>\n\n\n\n<p>&#8220;But they make many sacrifices, missing important life moments or spending quality time with family and friends. <\/p>\n\n\n\n<p>&#8220;This tension between strain and commitment is an \u2018emotional tax\u2019 &#8211; the hidden personal costs<br>made each year to see their business succeed.\u201d<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/02\/image-3.png\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"502\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/02\/image-3.png\" alt=\"\" class=\"wp-image-850357\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/02\/image-3.png 754w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/02\/image-3-300x200.png 300w\" sizes=\"auto, (max-width: 754px) 100vw, 754px\" \/><\/a><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\">Knock-on effects<\/h2>\n\n\n\n<p>The always-on nature of running a small business has a knock-on effect on rest and energy levels, which in turn affects business performance. <\/p>\n\n\n\n<p>77% reported getting less sleep since starting their business, while 37% lost four or more hours a night. 64% have also reduced or stopped making time for exercise. <\/p>\n\n\n\n<p>As stress builds, it becomes harder for founders and owners to find time for themselves, with 50% turning to overworking or late nights.<\/p>\n\n\n\n<p>&#8220;There are signs business owners are operating in survival mode, and tackling threats to their livelihood with a range of sacrifices and personal investments,&#8221; said Clinical Psychologist Dr Marc Rogatschnig. <\/p>\n\n\n\n<p>&#8220;Many of which we know are ineffective in the long term. As an antidote to the \u2018emotional tax,\u2019 entrepreneurs need to explore the route towards a \u2018flourishing\u2019 life.&#8221; <\/p>\n\n\n\n<p>Xero noted that actively prioritising life satisfaction, well-being, and healthy relationships will help protect from emotional burnout.<\/p>\n\n\n\n<p>This stress makes it impossible for one to perform at their peak, affecting the skills an entrepreneur needs to succeed, which then harms the business. <\/p>\n\n\n\n<p>This stress is silently costing South African small business owners an average of 33 working days of productivity each year, time that could be spent on connecting with customers or improving the business. <\/p>\n\n\n\n<p>87% of South African small business owners reported struggling with their professional performance due to the Emotional Tax. <\/p>\n\n\n\n<p>This included missed opportunities (36%), slower decision-making (36%), loss of confidence (35%), avoidable mistakes (34%), reduced creativity (33%) and more.<\/p>\n\n\n\n<p>Xero said that automating tasks can free up time for hobbies and holidays, which can restore mental and physical capacity. <\/p>\n\n\n\n<p>In good news, 92% of business owners are taking steps to manage their well-being and combat their daily stressors.<\/p>\n\n\n\n<p>Self-care (47%), spending time with family and friends (38%), carving out time for exercise (32%), escaping into entertainment (30%) and practising mindfulness and meditation (30%) are key ways to destress. <\/p>\n\n\n\n<p>30% are also trying to simplify their operations, with business managers spending an average of 39 hours a month managing their finances. <\/p>\n\n\n\n<p>\u201cYou shouldn&#8217;t have to sacrifice your well-being to see your business thrive, and it\u2019s a relief to see so many are already taking steps to manage their stress,&#8221; said Timmis.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/02\/image-5.png\"><img loading=\"lazy\" decoding=\"async\" width=\"998\" height=\"596\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/02\/image-5.png\" alt=\"\" class=\"wp-image-850359\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/02\/image-5.png 998w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/02\/image-5-300x179.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/02\/image-5-768x459.png 768w\" sizes=\"auto, (max-width: 998px) 100vw, 998px\" \/><\/a><\/figure><\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Small business owners often work themselves into the ground, which has severe knock-on effects for the business as a whole. <\/p>\n","protected":false},"author":95,"featured_media":850360,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[15424],"class_list":["post-850345","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-opinion","tag-xero"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/850345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=850345"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/850345\/revisions"}],"predecessor-version":[{"id":850450,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/850345\/revisions\/850450"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/850360"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=850345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=850345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=850345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}