One in three business owners suffering Covid-linked mental health decline

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AS Mental Health Awareness Week launches today (09 May), research from the Federation of Small Businesses (FSB) spotlights the negative impact Covid has spun on the mental health of close to two million entrepreneurs

The FSB survey of 1,000 business owners found that a third (34%) of all small business owners said their mental health had declined over the course of the pandemic.

Across all respondents, one in four (24%) reported a mental health condition such as anxiety, depression or post-traumatic stress. Among disabled entrepreneurs, the figure rises to four in 10 (43%). One in seven (16%) small business owners report having a mild mental health condition, with 6% and 2% respectively stating that they have a moderate or severe condition as defined by NICE.

With loneliness the theme of this year’s Mental Health Awareness Week, the new study also highlights the ongoing impact of the UK’s poor payment culture on mental wellbeing. Six in 10 (62%) small business owners state that they were subject to late or non-payment after Covid hit, with a quarter (26%) stating that dealing with poor payment impacted their mental wellbeing during the pandemic.

Wider studies underscore the isolating effect of poor payment. Estimates of the sum collectively owed to small firms in unpaid invoices vary – one recent study puts the figure at £140bn. Findings from FSB’s Small Business Index indicate that 400,000 small businesses are under threat because of poor payment practice.

FSB policy & advocacy chair Tina McKenzie said:

“With the thousands of business owners who feel isolated and hopeless because of late payment, policymakers should reflect on the challenges faced by entrepreneurs during this Mental Health Awareness week.

“By building on and promoting access to the support that’s already available to business owners and their teams, the Government can make a real difference to mental wellbeing.

“Over the years, we’ve seen how a worsening late payment culture – which sees corporates use suppliers as free credit lines – has sucked the joy out of running a small business for millions, leaving many feeling completely alone, and forcing thousands to close.”