December 15, 2025
Owning and managing a business is demanding. A recent survey by the Canadian Federation of Independent Business (CFIB) indicates that more than half of SME owners are facing, just like their employees, mental health challenges, notably intensified by the labor shortage.
Costs associated with mental health
According to a recent report by the Canadian Federation of Independent Business (CFIB) titled On the brink: mental health in Canadian SMEs, more than half of SME owners have difficulty managing mental health issues resulting from two years of the pandemic. The study also shows that nearly 66% of SME owners are on the verge of burnout.
The costs associated with anxiety, burnout, depression, bipolar disorders, or the sense of social isolation experienced by remote employees are significant. In Canada, productivity loss due to absenteeism and presenteeism, working while sick, represents annual costs of 6.3 billion dollars.
More than 72% of business leaders surveyed by the CFIB in 2022 indicated they were still experiencing stress due to the impact of the pandemic on their operations. Among other factors, the many extra hours spent recruiting new employees and high-performing executives are a major source of stress.
Those who have continued leading their businesses despite health restrictions face many daily challenges. Several barriers to growth prevent them from returning to pre-pandemic revenue levels.
Current challenges are well known: labor shortages, retirement of experienced employees and executives, integration of remote work, recruitment difficulties, supply chain disruptions, inflation, and more.
In addition, the economic outlook is uncertain, with the possibility of a slowdown in several sectors. A positive note in this context is that the proportion of employers aware of mental health issues increased in 2022 compared to 2020, rising from 35% to 54%.
3 strategies to promote mental health
If nothing is done, burnout among SME leaders can quickly put their business at risk. A leader or executive who can no longer fulfill their support role, particularly regarding mental health, may see employees lose confidence and leave the organization. Promoting mental health in the workplace has become a key factor in employee retention and in reducing absenteeism and presenteeism.
There is no simple solution to mental health challenges in the workplace, but here are three approaches suggested by the CFIB:
Talk openly about mental health
Establishing open dialogue about mental health in the workplace is essential. There are still taboos, as no one wants to be labeled or judged, especially business leaders. The risk of losing credibility is real. That is why mental health in SMEs should be addressed simply and directly, including risk factors, symptoms, and available resources.
Provide accessible resources
Seeking help proactively should no longer be seen as a sign of weakness, but rather as a way to strengthen individuals and, therefore, the organization itself. There are costs associated with therapy and available resources, and government support would be beneficial. Some initiatives have already been introduced.
Lead by example and learn to delegate
SME leaders should lead by example in maintaining a balance between professional and personal life. However, many do not follow this basic principle. Workload management is central to this issue. In practical terms, for a business leader, this means learning to delegate, a word many leaders are reluctant to embrace. Hiring one person to replace two departing employees is also not a sustainable solution.
Tailored solutions for organizations
Public figures such as Carey Price, Jonathan Drouin, and former athlete and entrepreneur Louis Garneau have openly discussed their mental health struggles and the steps they took to overcome them. This encourages action.
At the first signs of issues such as insomnia, irritability, or a general sense of losing control, a business leader should consult a professional. They should also research and contact organizations specializing in workplace mental health.
Several organizations are dedicated to this mission, including Institut Victoria and Relief and its business services. These organizations offer tailored solutions to improve mental health in companies, including reducing stigma.
A partnership between Relief and the Conseil du patronat du Québec (CPQ) even offers a mental health support program for SMEs, taking into account the economic realities linked to this issue.
Work with a headhunter
To face the major challenges of recruiting mid-level and senior executives in the current context, Recruscope offers valuable expertise to identify high-potential talent. For SME leaders, this is a practical way to delegate. Learn more on our website.
We can help you fill your mid-level and executive roles through our structured and personalized approach. Do not hesitate to reach out by email or at 438 870-7075 to discuss your needs.