The insights from 1,059 sole traders reveal the hidden costs of operating solo, from irregular income and admin overload to physical and emotional strain. These challenges often result in long hours, limited time for relationships, relaxation, or skill development, and a constant struggle to maintain a healthy work-life balance.
This comes as the January edition of MYOB Bi-Annual Business Monitor found that only 38% of non-employing businesses use an app or online platform for accounting and bookkeeping.
Key Challenges Faced by Sole Traders
The Solo by MYOB research highlights the hidden personal costs of being your own boss:
Isolation: Over three quarters of sole operators (77%) feel lonely or isolated due to a lack of colleagues, social isolation and support networks.
Admin overload: Over one quarter (27%) of sole traders spend more than 10 hours a week – equivalent to more than a full workday – on admin tasks alone, in addition to the time spent on their core business. Their most time-consuming admin tasks are taxation (40%), invoicing (34%), and accounting (32%).
Holidays on hold: More than half of sole operators (52%) say financial constraints have prevented them from taking a holiday. Sixteen per cent say a fear of falling behind on admin tasks has prevented them from taking a holiday.
Burn-out: Three in five (59%) sole operators report feeling physically or mentally exhausted, with younger generations most affected (70% of Gen Y and 68% of Gen Z).
Work-life balance & relationship struggles: More than half of sole traders (57%) agree they have less time for relationships or self-care because of admin pressures. Younger generations are more likely to agree (68% Gen Z, 67% Gen Y, 47% Gen X, 38% Baby Boomers)
88 per cent of sole operators work evenings to catch up on admin, limiting time for personal relationships and hobbies.
Two in five single sole traders (40%) say their work has stopped them from pursuing a relationship, or led to the end of a relationship.
Solutions: The top three things sole traders believe would help them to take time off are extra support (23%), setting boundaries (23%), and improved time management tools (19%).
Dr Matt Agnew, astrophysicist, wellbeing advocate and sole operator said: "Being a sole trader is a hugely liberating and empowering experience, but it’d be remiss of me not to mention some of the challenges you face. I can easily go an entire day without seeing or speaking to anyone (particularly face to face), and if you’ve a flexible working setup like me, it’s very easy to slip from working from home to living at work. The isolation, exhaustion, and lack of social interaction are extra things that you need to manage on top of your actual work to ensure you find a healthy work-life balance."
Across industries, many feel admin tasks are robbing them of the time and energy they could spend growing their businesses or enjoying life. The research shows more than three quarters (78%) of sole traders believe additional support, such as technology, extra staff and setting boundaries, would help them take more time off or reduce working hours.
Paul Robson, CEO of MYOB, emphasised the need for solutions: “Two thirds of Australia’s small businesses are sole traders, and while there are many of them, they often find themselves working alone. With Solo by MYOB, we have created an AI-fueled mobile app to enable sole operators to make more time for the things that matter most - whether it’s growing their business, honing their craft, or spending time with loved ones.”
Solutions for Sole Operators
Solo by MYOB is an all-in-one mobile app tailored exclusively for sole operators. Users get access to an online community of fellow sole traders to share advice, practical tips, and reduce isolation. Day to day support includes automated invoicing, connected banking, AI powered smart matching of transactions, faster expense management with snap and track expenses. These features are all supported by a GenAI-powered assistant for real-time trouble shooting.
“Australia’s 1.6 million sole operators need the right support to help them navigate the challenges of managing a business, as they work on aligning their passion and vision with the foundational requirements of building something new. By reclaiming time lost to admin, sole operators can focus on achieving a healthier balance between work and life,” said Paul.
ENDS
For more information, please contact:
Collette Betts
Corporate Affairs Manager
E: collette.betts@myob.com
About the research
The research was commissioned by Solo by MYOB and conducted by McCrindle and is the collation of quantitative data gained through a national survey of sole traders in Australia. The survey was in field from the 17th to the 22nd of January 2025, yielding 1,059 completed responses.