On World Mental Health Day, a new report has revealed the increasing stress and anxiety facing small business owners across the UK.
The study, conducted by Recognise Bank in partnership with Mental Health First Aid England, highlights staffing costs, rising energy prices, and impending fiscal events as key drivers of stress for small and medium-sized enterprises (SMEs).
According to the Mental Health in SMEs Report, the rising cost of hiring staff is the most significant concern for business owners, with 37% citing it as their primary stressor. This issue is particularly pronounced in London, the East of England, and Northern Ireland, where more than half of SME owners reported feeling the impact of escalating staffing expenses.
Energy Prices and Interest Rates Compound Pressures
The study also found that 36% of business owners are grappling with stress caused by increased energy costs and supply chain challenges. Additionally, high interest rates and the ongoing effects of last year’s recession continue to pile pressure on SMEs. Worryingly, only 1% of business owners reported feeling no significant stress or anxiety.
Autumn Budget and Key Dates Heighten Anxiety
As business owners await the Autumn Budget, set for 30 October, stress levels are expected to rise further. The report reveals that 67% of SME leaders experience heightened anxiety ahead of fiscal events like the Budget. With Prime Minister Sir Keir Starmer signalling tough measures, many business owners fear additional financial strain.
Ronelle Arbib, Chief Operating Officer at Recognise Bank, warned of the growing mental health crisis among business owners: “With the Autumn Budget, Black Friday, and Christmas all fast approaching, it’s more important than ever for business owners to prioritise their mental health. We encourage them to take steps to manage their wellbeing and seek support where needed.”
Mental Health Management Still a Challenge
Despite widespread stress, only half of business owners are actively taking steps to look after their mental health. Popular coping strategies include exercise (57%), hobbies (52%), and healthy eating (44%). However, nearly 40% of respondents were unaware of, or dissatisfied with, the government’s mental health support for businesses.
Vicki Cockman, Head of Client Delivery at Mental Health First Aid England, emphasised the importance of supporting mental health in the workplace: “The mental health of business leaders, especially in small enterprises, requires urgent attention. Employers must ensure their wellbeing strategies are inclusive and provide equitable support.”
Seasonal Stressors Ahead
The report also highlights key stress points in the business calendar, such as Black Friday, tax deadlines, and Christmas, as major contributors to anxiety. With 65% of SME owners reporting increased stress around the festive season, the study urges business leaders to focus on their mental health as they prepare for the challenging months ahead.
