One in five small business owners are struggling with depression and 39% are suffering from anxiety, according to the results of a new poll.
Depression, insomnia and anxiety are affecting many small business owners after a tumultuous few years. These are findings of a new survey of small business owners by Simply Business. And, in the midst of the current cost-of-living crisis, many business owners say their mental health has worsened.
The key findings of the research show that:
- 51% of small business owners describe themselves as stressed;
- 20% have been struggling with depression;
- 39% have been dealing with anxiety;
- 22% have experienced insomnia;
- 22% would rate their mental health as "bad".
Unsurprisingly, 81% of small business owners says that they are worried about how the cost of living crisis will impact their business and 65% cite rising costs as the biggest challenge. A quarter (26%) are worried they won't be able to pay their bills in 2023 and 60% say their profit margins are down.
Alan Thomas, UK ceo at Simply Business, said: "The self-employed are feeling the pressure of the current economic climate more than most, the effect of which is having a detrimental impact on their wellbeing."
The benefits of being a freelancer
However, a new study published this month suggests that those people that started to work for themselves last year actually saw an improvement in their mental health. Leapers, a project supporting the mental health of freelancers and the self-employed, polled freelancers in November 2022 and found that 85% of those who moved into self-employment during 2022 saw a positive effect on their mental health.
Matthew Knight, chief freelance officer and founder of Leapers, said: "There are definitely lots of benefits working for yourself, perhaps not having to deal with office politics, not having to commute into an office, being able to turn down work which doesn't motivate you - but it's pretty clear there are mental health benefits too."
Support for the self-employed
However, the findings also show that 63% of freelancers feel they don't have adequate support for their mental health at work. "Lots of our members come to self-employment and experience a bit of a shock when they suddenly realise they don't have someone to chat to at work anymore, or aren't sure who they can ask questions of, or where they can get support from," said Knight.
"Working for yourself doesn't mean working by yourself - and we want to make sure that everyone who is self-employed knows there are supportive communities and resources for those who are starting their own business. It's so important to know where you can find support during that first year".
Even so, the findings suggest that most freelancers would rather not go back to working for someone else. According to Knight, "78% of our group say that self-employment is a sustainable way of working, and 74% are optimistic about 2023 being a better year for them professionally. If you've got a good support network and proactively considering your own mental health at work, self-employment is a highly rewarding way of working."
Written by Rachel Miller.