Half of UK small business owners believe their mental health has suffered from the stress of managing their business finances in the past year.
A new survey has been conducted To determine Mental Health Awareness Week Exposing the emotional cost of being your own boss during a cost-of-living crisis.
Owners of small businesses that employ 2-10 people, have been in business for 5-10 years, and are solely responsible for company decisions are more likely to experience higher levels of anxiety and stress on their business finances, according to the survey.
The effects on mental health are also more likely among those people who have taken on personal debt to fund their business in the past year.
Among managers and owners who feel the financial aspect of running their business has affected their mental health, 60% have taken on personal debt for their business, while 69% have obtained or will need new financing in the next year. 43% This will be to pay off outstanding debts. Moreover, 65% are already personal guarantors or plan to become one for a business loan. This means that unless they have personal guarantee insurance, their homes and savings will be at risk if their business fails.
The survey also found that when small business owners want financial advice and support, their accountant comes at the top of this list followed by a lender or bank manager. Family members are also called upon by 1 in 5. Only 1 in 10 has also sought advice from another small business owner.
“Financial concerns can be a major concern and we had all the ingredients in the past year to increase stress levels for small business owners, as indicated in our survey. In many,” said Todd Davison, managing director at Purbeck Personal Guarantee Insurance, who commissioned the research. Many times, the finances of a small business are tied to the owner’s personal finances – whether it’s because he took out a personal loan to help the business, borrowed from friends or family or signed a personal guarantee for a business loan.This only adds to the worry, creating a huge burden on the owner. the boss.
“One way to address financial concerns on a practical level is through personal guarantee insurance. It exists to provide small business owners with greater peace of mind and confidence when taking out a loan backed by a personal guarantee. Purbeck also offers advice and guiding support when a business is in financial difficulty, including That talking to other companies that have had similar issues to see what they did to fix it.
On a more emotional level, we also recommend checking out our Mental Health Awareness website which has some great tips for dealing with anxiety – the theme for this year’s Mental Health Awareness Week. Tips include breathing techniques; exercise (ideally outdoors); journaling; Eat healthy, get rest and sleep, and connect with otherssecondly. We know that the connections we facilitate to small businesses as part of our claims service often made a huge difference to the mental well-being of the owner as well as the financial condition of the business.”
