NEW RESEARCH | 5 things that make small business managers feel bad – and good!

Managing a small business is stimulating in many ways. But the role comes with challenges that can affect the managers’ well-being. New research lists things that affect managers’ well-being.

Most research on managers’ work, working conditions and well-being is conducted in large companies. This is why Elena Ahmadi, University of Gävle, chose to specifically study the situation of managers in small businesses, those with up to 50 employees, in her doctoral thesis. The study includes both very small businesses and those in a growth phase, and some managers in the study own the company – and others do not.

– I found five categories of factors that small business managers feel enhance or hinder their personal well-being. They are: demands and resources in daily managerial work, achievment of results, and social, organizational and individual factors,” she says.

Specific conditions in small businesses

This is not very different from the situation in larger companies. Managers being stressed and not feeling well can be caused by, for example, long working hours, frequent interruptions in their work or difficulties in managing conflicts, in both small and large companies. Nevertheless, the small business context is proving to have unique characteristics that have not been recognized before.

– The fact that they do not have the same resources as large companies, for example in terms of staff and finances, means that they have more demands in their daily management work. Often, in addition to managerial tasks, the manager needs to do a lot of operational work. This can be a vulnerability that can negatively affect managers’ well-being. At the same time, there is a stronger social climate in small businesses which enhances the well-being of managers.

Responsibility for others is stressful

Another factor that affects managers’ well-being and is specific to small businesses is managers’ responsibility for others. The owner of the company is ultimately responsible for the success of the business and for ensuring that employees are paid on time and have job security.

– The well-being of employees is important for the well-being of managers themselves. They often have a close relationship with employees and care about them.

– Although there is a lot of stress for this group of managers, they often feel good at heart because they feel what they do is meaningful,” adds Elena Ahmadi.

Risk of poorer relations with employees

The doctoral thesis shows that variations in managers’ well-being are reflected in their mood and energy levels. This affects managers’ performance and leadership behavior, as well as the company’s social climate. For example, when they are not feeling well, managers are less available, more controlling and critical. Also less communicative, less solution-oriented and less pleasant.

– And on the contrary, when managers are well, they are more out among the employees and talking to them, and are more open to contacts. They are also more supportive and encouraging of their employees. Thus, it is mainly relationship-oriented leadership behaviors that are affected when well-being is low.

Shorter dip not a danger to the company

When a manager in a small company is unwell, this has a noticeable impact on the organization. Yet, these negative leadership behaviours do not have much impact on the employees in the study. This result is different from previous research, mainly conducted in large companies.

– One explanation for this could be that the managers in the study have a good basic level of well-being, and that they only feel bad for short periods of time. So the negative consequences for the company will also be temporary.

Second, in these companies there are protective factors that reduce negative leadership behaviors.

– Thanks to the close relationship between manager and employee, staff often understand that managers do not always feel well and are therefore less affected by the manager’s difficult work situation. Also, managers are good at regulating their behavior, or staying home if they feel they are contributing too much negative energy to the workplace.

As the company grows, managers feel better

The perception of well-being changes over time in a small business. As the company enters a growth phase, it has a positive impact on the well-being of managers. With more staff and better finances, leaders can focus on their core mission as managers. And from 50 to 100 hours per week in the early days of the company – without holidays and weekends off – they now work more like 40 to 60 hours.

– They feel more balanced, and have learned the hard way to take care of their health. Managers have understood that if they don’t prioritize a sustainable lifestyle, it’s not good for the company either,” says Elena Ahmadi.

Contact elena.ahmadi@hig.se

More about the thesis
Elena Ahmadi recently defended her doctoral thesis at the University of Gävle, the title of the thesis:Managers’ Work, Working Conditions and Wellbeing in Small Companies with Profitable Growth.

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