The hidden cost of stress in entrepreneurship, and why mental well-being is central to business success.
Stress and poor mental health are among the UK’s most pressing public health challenges. Yet, for small business owners, managing stress is not just about personal well-being – it can directly impact their business' success.
Every April since 1992, has aimed to shine a light on the causes of stress and its impact. It’s a crucial reminder that mental health struggles shouldn’t be ignored and that seeking support can be incredibly valuable.
Running a business comes with significant rewards, but also unique pressures. The need to juggle finances, manage employees, and maintain steady growth can often lead to business owners feeling stress. Many entrepreneurs struggle to switch off, take breaks, or set boundaries, leaving them prone to burnout.
, one-fifth (19%) of small business owners and sole traders take no annual leave, while those who do take an average of just 13 days off per year – far less than the 28 days most employees are entitled to. What’s more, a Uswitch survey found that 60% of small business owners feel very or somewhat guilty when they take time off, while only 6% admit they are able to avoid working when they are on annual leave.
Being your own boss offers freedom and flexibility, but it also comes with significant pressures that can take a toll on mental well-being. Long hours, financial uncertainty, and the weight of responsibility often make it difficult to maintain a healthy work-life balance.Â
In fact, found that a third of small business owners lose sleep over their finances. When financial stress builds up, the excitement of entrepreneurship can quickly give way to feelings of overwhelm.
That’s why proactively managing stress isn’t just beneficial – it’s essential for business success.
To avoid burnout and safeguard both mental health and business performance, small business owners should adopt practical strategies for managing stress:
1. Prioritise self-care Taking care of yourself is not a luxury – it’s a necessity. Ensuring adequate sleep, regular exercise, and a balanced diet can boost resilience to stress. Even small habits, like stepping away from screens for short breaks, can improve focus and mental clarity.
2. Set boundaries and structure your time Many business owners struggle to switch off. Setting clear work-life boundaries — such as defining working hours, avoiding emails outside of set times, and scheduling regular breaks — can play a role in preventing burnout. Tools like time-blocking or apps that limit screen time can also be helpful.
3. Build a support network Talking to fellow entrepreneurs, mentors, or business networks can provide reassurance and fresh perspectives. Even informal chats with peers can alleviate stress and provide valuable problem-solving insights.
4. Manage finances effectively Financial stress is a common trigger for anxiety. Proactively managing cash flow, setting aside emergency funds, and seeking professional financial advice can provide much-needed security. The right financial products, such as business savings accounts or tailored loans, can also ease financial pressure.
5. Encourage open conversations If you have employees, fostering an open dialogue about stress and mental health creates a more supportive work environment. Being transparent about challenges can encourage others to share their own struggles, reducing stigma and promoting well-being.
Stress Awareness Month serves as a timely reminder for small business owners to prioritise mental well-being. Taking proactive steps to manage stress isn’t just about self-care – it’s about building a sustainable business that thrives in the long run.Â
By making mental health a priority, entrepreneurs can cultivate resilience, improve decision-making, and ultimately set their businesses up for long-term success.
Joe is an experienced writer, journalist and editor. He has written for the BBC, National Geographic, the Observer, Scientific American and VICE. As a business expert, his work frequently spotlights the ventures and achievements of small business owners.