Four in five SME owners say COVID-19 has negatively affected mental health
A mental health crisis is looming among SME owners after the stress and anxiety caused by the coronavirus pandemic, according to new research from small business insurer Simply Business.
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Four in five (82%) SME owners admitted the COVID-19 pandemic is having a negative impact on their mental health, while a fifth (19%) describe their current mental wellbeing as ‘bad’. Almost half (47%) are worried about their mental health.
The study of 765 small business owners also revealed that a third (30%) have experienced depression in the last 12 months, three in five (62%) have been affected by stress, over half (55%) have suffered anxiety, and a further 51% have had problems with sleep. In total, a worrying 82% of self-employed people having suffered with poor mental health in the last 12 months.
Additionally, over a quarter (27%) of SME owners have felt low self-esteem in the past 12 months and a fifth (19%) have experienced loneliness. The vast majority – if not all – said that any symptoms of poor mental health have either been caused by or made worse by the Covid-19 pandemic.
Small businesses have been among the hardest hit economically from Covid-19, with the pandemic causing severe disruption to business operations and therefore income. A third (33%) of SME owners have had to temporarily close their business at various points of the pandemic and well over two fifths (44%) are operating at a reduced capacity. Just one fifth (21%) have been able to continue operating as usual.
But the study showed that running a small business during the pandemic has had a huge impact on small business owners’ mental health.
Over a third (35%) struggle to switch off, one in five (21%) say it has affected their confidence and more than two in five (22%) say it has impacted relationships with family or friends.
What’s more, almost a third (28%) are feeling demotivated to work or restart their business, and one in five (18%) have fallen out of love with their business or the industry they work in. This trend risks a huge blow to the UK’s 5.8 million small businesses which together hold a vast contribution to the country’s economy.
Financial worries are having the biggest negative impact on SME owners with two in three (61%) saying it has negatively affected their mental wellbeing in the past 12 months.
This was closely followed by not being able to see family or friends (60%), uncertainty surrounding their business (44%), and stress (48%).
Almost one third (28%) of SME owners cited isolation or loneliness as negatively impacting their mental wellbeing over the last year, and almost a quarter (24%) said a lack of physical exercise has harmed their mental health.
It’s clear that some worries remain as SME owners look ahead. Almost half (49%) are concerned about the future of their business, while over one in five (22%) worry about their business permanently closing this year.
Perhaps a greater cause of concern, is that almost half (47%) are concerned about their own mental wellbeing in 2021 – with the almost-year-long Covid-19 pandemic beginning to take its toll after such a sustained period of difficulty.
But despite these challenges, SME owners also have an encouraging level of optimism when thinking about the year ahead. Two in five (39%) are optimistic about the economy picking up and well over a third feel hopeful about the future of their business (36%), and jobs and orders picking back up (35%).
A third (31%) are feeling positive about their business’ ability to adapt to these new conditions, and a fifth (21%) are looking forward to learning new skills.
Reassuringly, SME owners are taking steps to improve their wellbeing this year. Two in three (67%) are spending more time outside and in nature where possible, while a further 64% plan to exercise more and dedicate more time to connecting with friends and family (also 64%). A third (32%) will use reading as a tool to improve their wellbeing.
Other methods SME owners are looking to include gardening (27%), mindfulness and meditation (25%) as well as exploring arts and crafts (21%).
Alan Thomas, UK CEO at Simply Business, commented: “Few have been hit harder by the effects of the pandemic than the self-employed. Livelihoods are on the line as a result of Covid-19, with small business owners facing an unprecedented amount of pressure. Clearly this is having a huge impact on their wellbeing.”