New research shows New Zealand small business owners are avoiding paying their cheques due to increasing prices and cutting costs.
According to Xero, the findings are the result of small business owners struggling to combat a weak cash flow.
The research shows significant signs of financial stress business owners are facing, with some small businesses calling out inflation as one of the key causes behind the major hurdle.
Xero found 46 percent of business owners and 60 percent of sole traders are skipping out on paying themselves to keep their business functioning.
"These insights indicate the significant financial stress many small business owners are facing," Xero New Zealand country manager Bridget Snelling said.
"When you add in inflation, climbing interest rates and reduced spend from consumers, small business owners are walking a tightrope every day," Snelling added.
She said when owners experience cash flow issues, one of the first things to go is their own pay.
"It's a systemic and volatile cycle, which sees business owners dipping into their own personal savings, working unattainable hours and ultimately sacrificing their emotional and physical wellbeing to stay afloat."
When asked about the emotional and physical turmoil in Xero's survey, business owners opened up about the consequences on themselves.
People reported stress (80 percent), anxiety (70 percent), trouble sleeping (60 percent) and losing time with friends/family (47 percent) over the past 12 months.
The report also found 94 percent of small business owners feel they are not achieving their business goals.
It also found 90 percent of those who are less confident that they will meet their financial obligations, are suffering from stress.
"These findings reflect how closely business goals and financial health are connected to small business owners' personal stress and anxiety," Snelling said.
