The biggest threats facing small business owners over the next year include paying back government Covid-19 loans, lack of consumer spending, and hefty fuel price increases, a poll has found.
A poll of 1,000 small or medium enterprise (SME) bosses found two-thirds of those who had been running their business since before the pandemic admitted the last two years had been the most challenging since they started their venture.
Nearly half of them (47 per cent) feared the next 12 months could prove even more difficult, with 12 per cent admitting to a strong possibility they would have to shut up shop. Three in five of SME owners had suffered sleep loss while worrying about their business, pollsters found.
Some 44 per cent worked weekends, 36 per cent went six months or more without a holiday and one-third worked seven-day weeks on a regular basis.
Other obstacles identified include managing their own mental health and uncertainty over Anglo-international relations following Brexit.
But one-sixth of SME owners are hoping the platinum jubilee’s extended bank holiday would provide a much-needed boost in profits, and one-third were waiting for Christmas to increase their sales.
Ben Ramsden, from PayPal UK, which carried out the survey, said: “Financial woes and stress can have a negative impact on health and wellness.
“In tough times, staying on top of their finance wellness is a vital tool for small business owners.
“It needs to be a priority to minimise the personal impact of running a business, which can be an isolating and challenging experience for entrepreneurs.”
Given the current challenges, three in five admitted to finding running their business stressful. Furthermore, one-quarter ignored the financial health of their business, worried about what the true picture is.
However, SMEs were now trying to take more control of their financial wellness by learning new skills on using finance apps (31 per cent) and learning from past mistakes (53 per cent). As a result, 56 per cent of respondents felt more financially savvy following the uncertainty of the global pandemic.
More than one-quarter (27 per cent) felt they had regained control of their own business after experiencing such uncertainty and one in five (21 per cent) feel more empowered as a business owner since improving their knowledge of their finances.
And having a financially healthy enterprise will start to create new opportunities for small business owners, according to the research, by OnePoll.
This included having more self-confidence as a leader (45 per cent), having savings for the future (42 per cent) and experiencing less stress (39 per cent).
