The Mental Health Crisis Among Entrepreneurs in the UK

The implications of the mental health crisis among entrepreneurs

Mental health issues have long been a significant concern for people in various professions, but the mental health crisis among entrepreneurs in the UK is particularly acute. Entrepreneurs in the UK face unique pressures that can significantly impact their mental wellbeing.

From financial instability, working long hours, to the demands of running a business, the mental health of entrepreneurs is often at risk. Research indicates that poor mental health among entrepreneurs is experienced by nearly half of small business owners. This figure is far above the national average. In this article, we explore the extent of the mental health crisis among entrepreneurs, the contributing factors, the implications for their businesses, and practical tips for maintaining mental well-being.

The Scale of the problem

Recent studies have shed light on the high prevalence of poor mental health among entrepreneurs. According to Simply Business, approximately 47% of small and medium-sized enterprise (SME) owners have reported experiencing mental health issues in the last year. This is nearly double the rate found in the general workforce. Entrepreneurs often work in isolation, struggle with financial pressures, and face long working hours, all of which can contribute to anxiety, stress, and depression.

The most common mental health symptoms among entrepreneurs are anxiety, depression, and feelings of loneliness. The same Simply Business report found that 59% of entrepreneurs experience anxiety, 38% suffer from depression, and 22% feel isolated. Moreover, the issue is particularly pronounced among women entrepreneurs, with 86% of women reporting mental health struggles compared to 77% of men, according to Mental Health UK. These figures illustrate the severe impact that entrepreneurship can have on mental wellbeing.

Other factors highlighted by the Mental Health UK report include business owners reporting:

• 66% have an inability to focus
• 64% suffer from anxiety
• 63% experience disrupted sleep
• 25% have panic attacks

The Pressure of Entrepreneurship: Key Contributing Factors

Four in ten respondents (Mental Health UK) state that the main impacting factor in their poor mental health is financial worries, including managing cash flow, securing investment, handling debt, and ensuring that the business remains profitable.

Other factors include:

Isolation and Lack of Support Networks
Many entrepreneurs operate without the benefit of a larger team or peer group, which can lead to loneliness and a lack of perspective. Mental Health UK’s research notes that many small business owners feel isolated and unsupported.

Long Working Hours and Work-Life Imbalance
Entrepreneurs often wear many hats, leading to overwork and insufficient downtime. This imbalance leads to burnout and stress.

Stigma Surrounding Mental Health
As Mental Health UK reports, 44% of small business owners have never accessed mental health support, often due to fear of being judged or appearing weak in front of peers, investors, or employees.

Implications for the Business

Poor mental health doesn’t just affect the individual – it has direct consequences for the business. Some of the key implications include:

1. Decreased Productivity – Mental health issues sap energy and focus, leading to missed deadlines and reduced performance.
2. Poor Decision Making – Chronic stress or depression can cloud judgment. Emotional decision-making may replace strategic planning, increasing risk.
3. Strained Relationships – Business success often depends on good relationships. Entrepreneurs under stress may communicate poorly or disengage, leading to staff dissatisfaction and customer churn.
4. Burnout and Business Closure – According to The Times, rising numbers of business leaders are seeking mental health support, often only when they reach a crisis point. Burnout is a growing cause of business underperformance and closure.

Add to all these factors the sleeplessness due to worry about all the above-mentioned factors, and you have the perfect recipe for anxiety, depression, burn out and loneliness. Yet, despite this, half don’t feel comfortable disclosing poor mental health as a reason for time off or for delaying deadlines.

Tips for Maintaining Positive Mental Health

Alan Cutler of Strategic Growth Hub who supports entrepreneurs efficiently scale their businesses, thinks it is always best to nip in the bud any signs of poor mental health:

I’ve seen firsthand how negative mental health can affect entrepreneurs and how making simple changes to work life balance, joining networking groups where problems can be discussed and seeking professional help has made a massive difference.

I thoroughly recommend taking action and not continuing to ‘keep up appearances’, before money, before the business or anything else comes you, without you, there is no business.

Fortunately, there ARE actionable steps entrepreneurs can take to safeguard their mental health:

1. Build a Support Network
   Join peer groups, networking circles, or online communities to share experiences and reduce feelings of isolation.
2. Set Boundaries and Work Hours
   Define clear working hours and stick to them. Avoid working on weekends or during personal time.
3. Prioritise Physical Health
   Regular exercise, a healthy diet, and sufficient sleep all support mental resilience.
4. Delegate and Outsource
   You don’t have to do everything yourself. Delegating can lighten your workload and reduce stress.
5. Practice Mindfulness and Stress Management
   Incorporate practices like meditation, journaling, or short walks to break up the day and improve focus.
6. Seek Professional Help When Needed
   Therapy or coaching can provide tools to manage stress and address deeper mental health issues. There’s no shame in seeking support.
7. Create a Culture of Openness
   If you have a team, be open about mental health. This fosters trust and  makes it easier for others to seek help when needed.
8. Take time off!
   Small business owners don’t take time off when they’re struggling. They have to keep the show on the road, hit deadlines, deliver goods and services and often there’s no one to step in to help. 

Conclusion

Mental health challenges among UK entrepreneurs are widespread and serious. The pressures of running a business can lead to anxiety, burnout, and even business failure if left unchecked. But with the right awareness, support, and proactive strategies, entrepreneurs can protect both their well-being and the future of their business. By building resilience and breaking down the stigma around mental health, we create a healthier, more sustainable path for entrepreneurship in the UK.

Farringford Legal’s HR team, led by Kate Goodman include qualified Mental Health First Aiders and trainers who can help support implementation and training of your staff on managing mental health in the workplace. Get in touch to find out more!