Family-Owned Businesses & Mental Health

Mental health is real and non-discriminatory. It is not a figment of the imagination and not confined to a particular stratum of society. The effects of mental health are not confined to the affected individual or affected family, with data showing that many family-owned businesses (FOBs) have been affected by mental health-related issues. Yet the stigma attached to mental health continues to paralyse families, businesses, and impede the efforts of those who are working to help those who suffer from different mental disorders.

Because of the stigma attached to mental health, many FOBs have spent millions to shield or hide family members who suffer from different mental health disorders. In some cases, these are unbudgeted expenditures, which have led to unintended outcomes, including destroying the family bond they seek to protect, perpetuating a culture of silence, the demonising of mental health, wiping out profit margins, and the demise of the business. But, are there alternatives to this approach?

While there is evidence that concealing the status of a family member’s mental health can have negative psychological outcomes, the decision to conceal or share this knowledge is complex. The literature seems to agree with James Baldwin’s view that “not everything that is faced can be changed. But nothing can be changed until it is faced”. If this is taken to be true, then FOBs are better off being proactive and transparent in addressing the “problems” they are trying to hide. Given the increased focus on mental health-related issues, I think it is time for FOBs to give more attention to formulating strategies and putting plans in place to address mental health-related issues. A basic knowledge of mental health is a good starting point for FOBs.

The World Health Organisation (WHO) defines mental health as a state of mental well-being that enables people to cope with the stresses of life, realise their abilities, learn and work well, and contribute to their community. According to the WHO, more than a billion people live with a mental health condition; affordable, effective, and feasible strategies exist to promote, protect, and restore mental health; the need for action on mental health is indisputable and urgent; and mental health has intrinsic and instrumental value and is integral to our well-being. A 2023 article in The Lancet Psychiatry, a highly reputable peer-reviewed scientific journal, stated that about 50 per cent of people are expected to develop some form of mental condition. The article, based on data drawn from 29 countries, concludes that by age 75 years, approximately half the world’s population can be expected to develop one or more of the 13 mental disorders covered in the research. These mental health disorders, such as anxiety, depression, bipolar disorder, schizophrenia, and post-traumatic stress disorder, affect families in different ways across the globe.

In the systems view of families, or the Family Systems Theory, the family is viewed as an emotional and complex unit made up of interconnected and interdependent members. Viewed through the lens of Family Systems Theory, behaviour and communication patterns are seen as idiosyncratic of a family. The roles played within the family unit influence each other, in the mode of self-regulating the process of maintaining a stable, balanced internal environment. The well-being and behaviours of one family member affect other members and the family system.

While the effects of mental health on individuals and families are well documented, there is little documentation on the effects on businesses. However, given the inextricable link between family and business in FOBs, one would expect that the mental health of members of a family will have some form of effect on the business. Given the raft of documented effects that mental health can have on FOBs, it is important to have a plan to address mental health-related issues.

Unlike other businesses, FOBs have the added layer of the family being inextricably linked to the business. In many cases, this means that the business is an extension of the family. Therefore, when one or more family members live with a mental health disorder, not only does this impact relationships, dynamics, and structures of the family, there is the potential of this extending to the business. While non-family-owned businesses can sometimes treat mental health issues as exogenous variables to their operations, FOBs might not be able to do this, and, therefore, will need to treat these as endogenous variables.

The heterogeneous nature of FOBs means that the impact of mental health will be different across families and businesses. The strategy employed by one family business might not be appropriate for other FOBs. FOBs need to have a structured and coherent plan in place that fits the reality of the family and the business. While the stress caused by mental health disorders of a family member can lead to conflicts and tensions among employees in one business, the manifestation of similar stress might be different.

Effects of mental health-related issues on family and business, when not addressed, include personal family issues spilling over into business operations, impairment in the decision-making process of the business, low productivity, and low morale among employees (including non-family members). These and other effects can become more pronounced if there is no structured and coherent plan to address issues related to mental health.

In navigating the challenges of mental health in families, care must be taken to have a balance. There have been cases where family members have been banished to protect the business. In such cases, the FOBs run the risk of having the backlash of society turning away from them, with the view that “if you can do that to family, what would you do to me”? How you create this balance is the challenge facing FOBs. The literature on mental health tells us that recovery from mental health disorders requires professional treatment, and in the absence of support from loved ones, recovery could take years or be thwarted. Owners of family businesses, therefore, face the age-old question: which comes first, the family or the business? Stated another way: Is it the business that drives the family or the family that drives the business? The family business literature advises that these questions should be addressed through the lens of the values of the family and the business, underlining the need to have a plan and approach that fits the needs of the family or the business – a “cut and paste” approach is not recommended.

Burying or attempting to hide the mental health challenges of family in the “back room” of the business could do more harm than good. FOBs will benefit from having a coordinated plan to navigate mental health challenges. Ways of engagement could include starting the discussion in the family, not being constrained by the desire to protect the business at the expense of the individual or the family, and inviting professionals trained in mental health to engage employees. When all is said and done, it is difficult to disagree with the quote from Glenn: “What mental health needs is more sunlight, more candour, and more unashamed conversation.” The ball is in the court of FOBs to start the conversation.

More anon.

Lawrence Nicholson, PhD, is a senior lecturer at the Mona School of Business & Management, The University of the West Indies, and a former director of the RJRGLEANER Communications Group. He is passionate about FOBs, as is reflected in his writing on the topic, including in his book: Understanding the Caribbean Enterprise: Insights from MSMEs and Family-Owned Businesses. Send feedback to lawrence.n.08@gmail.com