It’s Stress Awareness Month and employee mental health is in the spotlight. But with impact of the war in Iran threatening to hit the economy hard, most small business owners probably need little reminding of the pressures involved. Workplace wellbeing investment is a solution, but how can firms afford to spend while safeguarding cash flow?

What is the state of small business mental health in 2026?

New research leaves little doubt as to the extent of the problem. According to a study from Novuna Business Finance, almost 80% of small business owners revealed that worries linked to running their businesses kept them up at night, with economic volatility and geo-political uncertainty the major cause of this sleeplessness, cited by over 50% of owners.

Of course, it not just these big-ticket factors that are affecting the health of those in charge of small businesses. The research also points the finger at issues relating to tax and interest rates, red tape, compliance and regulations and business rates. That said, geo-political matters are likely to cause more and more nightmares the longer the supply of oil is disrupted.

Surveys from Purbeck Insurance Services and Market Direct paint. a similar picture. According to research from the former, one in four small business owners admitted that their mental health had been significantly affected because of stress relating to managing their business finances, with cash flow problems, debt issues and personal guarantee risks the causes of particular strain.

With regard to the Market Direct study, almost half of respondents said that they had considered leaving their business because of stress, with nearly 60% reporting that they had experienced burnout. Notably, well over half admitted to working more than the standard hours, while 40% said they had to factor in out-of-hours client work.

How alternative lenders can help with finance for workplace wellbeing

The recent research lays bare the toll running a small business can have, and with the global oil supply continuing to be disrupted, it seems fair to say that there will be more stress to deal with in the short term.

These are, of course, solutions. Workplace wellbeing is a fast growing segment, with an expanding list of initiatives and schemes that can be put in place to improve the mental and physical health of employees, including senior personnel and owners. Also, reducing stress can also be achieved by increasing investment in internal systems and resources.

However, this all comes with a price tag. And at the moment, with numerous demands on company capital, finding the capacity to spend on workplace wellbeing is far from straightforward, in particular with access to finance continuing to be challenging as legacy lenders remain cautious about lending to small firms.

This is where alternative finance can help.

Small business lending from traditional sources remains difficult as Q2 gets into gear: almost 40% of firms are finding accessing affordable finance one of their biggest challenges. Notably, there has been a call for the introduction of legislation that would require banks to increase access to low-cost lending for small businesses.

In response, alternative lending solutions, such as invoice finance, asset finance and peer-to-peer lending, have become essential funding lifelines. By offering a more accessible, cost-effective and personalised approach to lending, these alternative finance facilities are helping small businesses navigate the current climate and target greater stability and growth.

Small firm finance options for investing in workplace wellbeing

While not often a headline subject, the seriousness of workplace stress shouldn’t be overlooked, not least with regard to health of those who run these firms. After all, without key personnel, business performance is affected and this can be a slippery slope to something more calamitous.

Combating stress and safeguarding the health of employees is possible but it requires investment. Yet with limitations around lending from legacy banks, such a step presents its own set of stresses. This is why it is important that key decision-makers are aware of all the available finance options, including the services of alternative lenders.

To find out more about A&T Business Associates services, contact Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk.