A new report by BizCover shows one in three Australian small business owners have never taken a full week off work, with many pushing through illness, missing family milestones, and experiencing severe operational strain. An RMIT expert explains why extreme overwork is a structural warning sign that a business is overly reliant on its owner.
Associate Professor Carol Tan, School of Fashion and Textiles:
"The results from the BizCover report highlight the significant sacrifices many small business owners make to ensure their venture is a success.
"In the early stages, small business owners will often need to wear multiple hats, but as the business grows they should aim to shift from working in the business (the day-to-day operations), to working on the business (through strategy, leadership and growth).
"Businesses that rely heavily on the owner's time, knowledge and expertise can face challenges in scaling as growth becomes constrained by the number of hours one person can work. Over time, this can create a bottleneck that limits both business growth and resilience.
"Scaling successfully requires founders to create capacity beyond what they can personally deliver.
"This means investing in people, systems and organisational capability that allows the business to operate beyond the owner's direct involvement.
"Entrepreneurship was never meant to be a lone-ranger journey. Sustainable growth is achieved when businesses can continue to create value without relying on the owner's constant involvement."
Dr Carol Tan is an Associate Professor and Program Manager of the Master of Fashion Entrepreneurship at RMIT University, with research expertise in SME competitive advantage, growth strategies and enterprise resilience.
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