The demands of running a small business is pushing owners and managers to the edge, and often over it. The need to invest in workplace wellbeing, whatever form it may take, has never been clearer. But how can firms do this while safeguarding cash flow?

How is running a small firm in 2025 affecting owners and managers?

A raft of recent studies has underlined the pressure on small business owners and leaders and the toll running a firm is having on their health. According to a new survey from Virgin Media O2 Business, over three quarters of SME directors claim that running their business is having a negative impact on their mental health.

Notably, the research also reveals that over half of leaders feel more stressed now compared to when they launched their businesses, while almost 30% stated that they can’t afford to take time away from work.

Findings from a study from Purbeck Insurance Services paint a similar picture. According to the survey, almost 60% of SME owners and managers are working as much as 70 hours per week, with almost 40% revealing that the financial aspect of running their business is taking a toll on their mental health. Fewer than 25% take a break from work on their holidays.

What the leading causes of SME owner/leader stress?

A study USwitch provides further evidence of this trend. According to this poll, almost 80% of SME owners admitted to working during annual leave, with over three quarters saying that they feel guilty about taking time off. Almost 20% haven’t taken a full week of holiday in over 12 months.

The research from USwitch also pinpoints banking and finance as a leading source of stress, with over a third of SME owners and managers struggling to manage their accounts, as well as email and inbox management, and meetings.

The results of these studies point to a significant problem. And, of course, it’s not just small business owners and managers that are fearful of burnout, but other members of the workforce as well, from top to bottom.

Investing in staff wellbeing and how alternative finance can help

Given the current market climate, it is unsurprising that small business owners and leaders are under a lot of pressure. Nevertheless, the extent of the problem is alarming. Implementing dedicated workplace wellbeing policies or investing in systems and staff to relieve some of the burden are obvious solutions, but there is little evidence of an upturn in such activity. Cost has to be a principal reason.

So, how can small business owners and managers access the finance to invest in avoiding burnout while protecting cash flow? This is where alternative finance can help.

Small business lending from traditional sources remains subdued as Q3 gets under way, with SMEs still experiencing difficulty in accessing finance from high-street banks. As a result, alternative lenders are becoming increasingly embedded in the small business finance landscape.

Services such as invoice finance, asset finance and peer-to-peer lending are proving a vital source of capital for small businesses in the current funding climate. These alternative finance facilities, which offer a more easily accessible, affordable and personalised approach to lending, are helping small businesses survive and target recovery, stability and growth.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including asset finance, invoice finance and asset-based lending. This is further proof that alternative lenders are increasing filling the small business funding gap.

SME finance options for spending on workplace wellbeing in 2025

Rarely has there been a more challenging time to run or lead a small business. The impact of doing so at a time of severe economic and market headwinds is laid bare by the findings of the recent Virgin Media O2 Business, Purbeck and USwitch surveys.

If the small business sector is going to see out this period of prolonged austerity and target new growth, it needs its owners and managers to be mentally and physically healthy. This requires investment in healthier workplaces and work practices. As such, against the backdrop of continued traditional lender caution, it is vital that key decision-makers are aware of all the finance options available to them, including alternative finance facilities.

To find out more about A&T Business Associates services, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.