16 May 2023
A survey carried out by Purbeck Personal Guarantee Insurance has suggested that half of small business owners have had their mental health adversely affected by financial concerns.
Owners of small firms that employ between two and ten people and those that have been trading for between five and ten years are more likely to have experienced higher levels of stress over their business finances, the survey found.
It showed that 60% of business owners have gone into personal debt for their business and 69% will require new finance in the coming year. Additionally, 65% of owners are personal guarantors or are looking to become one for a business loan.
Todd Davison, Managing Director of Purbeck Personal Guarantee Insurance, said: 'Financial worries can be a source of huge anxiety and we've had all the ingredients in the past year to increase stress levels for small business owners, as reflected in our survey.
'Often, the finances of a small business are linked to the personal finances of the owner – whether that's because they have taken on a personal loan to help the business, borrowed from friends or family or they have signed a personal guarantee for a business loan. That just adds to the worry, creating a huge burden for the owner or manager.'