Professor Ian Hickie from the Brain and Mind Institute in Sydney said that the increase could be due to concerns about financial security and unemployment risk.
This figure could have only increased since then: in the financial year between 2012-13, bankruptcies recorded the strongest quarterly increase since the June quarter 2008 with personal insolvency agreements recorded the strongest quarterly increase since the September quarter 2011.
Support which reaches beyond mental health care services is needed to empower victims of bankruptcies and insolvencies. According to the Rebuild Foundation, a registered not-for-profit charitable organisation, over 10,000 small businesses a year will face insolvency which will lead to the collapse of the business and in some cases bankruptcy for the owners. The Rebuild Foundation says that most business owners invest most of their personal savings into a business, causing great trauma to not only themselves but their family and friends.
The Institute of Public Accountants (IPA) is proud to partner with The Rebuild Foundation in order to support victims of insolvency.
Why the Rebuild Foundation was established
The unfortunate reality:
There are over 2.5 million small to medium businesses operating throughout Australia. It is widely recognised that they are the engine room of the economy and the largest combined employer in Australia, but the unfortunate reality is that statistics show that a sizable portion of these businesses will fail. This is nothing new, as history shows us that businesses failing are a fact of life and has been the case since man first began to fulfil their entrepreneurial spirit and will continue to be the case into the future. There are many reasons behind why a business may fail but one thing is for certain, no one goes into business hoping that it will fail, but many will. The majority of these will be left to struggle alone with the human costs of their businesses failing and the lasting affects it can have on them and their families.
[breakoutbox][breakoutbox_title]Human cost of business failure[/breakoutbox_title][breakoutbox_excerpt]The Rebuild Foundation lists a number of mental health problems that may arise out of insolvency.[/breakoutbox_excerpt][breakoutbox_content]
- Loss of confidence and self-esteem
- Feelings of guilt and shame
- Loss of identity and separation anxiety
- Family and relationship stress
- Difficulties in finding employment
- Ongoing debt and financial hardships
- All of which can lead to significant mental health issues including depression and could lead to suicide
- Every year in Australia over 10,000 business owners and their families are left to cope alone with the consequences following a business failure
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Left to cope on their own:
Despite the vast array of support programs and resources available for business owners whilst in business, sadly those trying to cope with the consequences post the failure and closure of their business have very little or none at all. Up until now there has been no formal support program in place to either, raise awareness, represent, or provide support to business owners and their families following a business failure. In addition to this, there has been no one collecting information on the mental health issues of the self employed or the number of self employed people who commit suicide as a result of their business failing. The Rebuild Foundation has been established to address all these issues.
How you can assist:
The Rebuild Foundation relies on the strength of stories to educate and support their clients. If you’ve been through insolvency, and would like to share your stories and offer support, here’s how:
• Shared stories: You may have been through or know someone that has experienced business collapse. The Rebuild Foundation is seeking short articles (no more than 400 words) from people who are prepared to share their stories on the Rebuild Foundation website. There is also an online forum within the website for people to have discussion.
• Contribution to online program environment: The Rebuild Foundation program consists of nine modules:
- Reduce Isolation
- Spouse Support
- Mental Health
- Financial Guidance
- Mindset Repair
- Health & Fitness
- Direction & Purpose
- Finding Employment
- Back Into Business
The foundation would appreciate articles to be contributed across these nine modules for their online environment.
Contribution can be emailed to the foundation’s Executive Chairman, Wayne Toms at wtoms@rebuildfoundation.com.au
For further information please visit www.rebuildfoundation.com.au
