Is it any surprise that employee burnout is on the rise in the small business sector? The pressure continues to mount, with little to suggest headwinds will ease. Investment in workplace wellbeing is needed, but cost is barrier. What can firms do?

What does the workplace stress landscape look like?

A recent study from Hiscox underlines the extent to which workplace stress is affecting small businesses. According to the research, a staggering 90% of SME owners can’t get a good night’s sleep as a result of worries over business risks. The 2026 Burnout Report paints a similar picture, with the survey revealing that 20% of workers took time off because of poor mental health, rising to almost 40% for 18 to 24 year olds.

This makes grim reading, with mental health issues carrying serious personal and business risks. According to research from Astutis, over half of employees are making mistakes in the workplace because of stress, while over a quarter have missed a deadline and a third have clashed with a colleague at work for the same reason. Overall, almost a million workers have experienced work-related stress, depression or anxiety in the last year.

Among the leasing causes of workplace stress, for employees from top to bottom, are cyber threats and data breaches, rising energy and fuel costs and supply chain disruption, while late payment issues, legal problems, labour costs and tax rises are also key worries for small business owners and staff.

Given the role that small business play in the economy, it is essential that these firms are able to efficiently engage with workplace wellbeing and have the systems and structures in place relating to employee mental health. Notably, the call to treat mental health as workplace issue is growing louder and the trend toward offering wellbeing plans and policies is advancing. However, at the same time, it is clear that small firms could be doing more.

How alternative lenders can help fund workplace wellbeing investment

What is holding small businesses back when it comes to investing in workplace wellbeing? Cost. Margins are tight and cash flow is under pressure, which leaves little room for finding money for investment, no matter how essential it is. At the same time, accessing finance is difficult, with traditional banks remaining cautious with regard to small firm lending.

This is where alternative lenders can help.

Small business lending from legacy sources remains difficult in Q2, with 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 funding lifelines. For example, asset finance is being commonly used means for buying vehicles, machinery or equipment, while invoice finance is being employed to manage staff costs and, more broadly, to cover costs while income catches up.

Overall, 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

Investing in workplace wellbeing is very challenging in the current climate, but such are the personal and business risks that firms have to find a way. Without key people, or with stress forcing significant errors or bad decisions, the pressure on small firms will only grow.

This is why, with traditional banks taking a cautious stance over small business lending, it is important that key decision makers are aware of all the finance options available to them, 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