Running a small business isn’t easy at the best of times and these are far from that. As small business owner burnout and start-up founder exhaustion make the news again, how can firms afford to invest in workplace wellbeing?

The results of a number of recent surveys make it clear: the current climate is taking its toll on the mental health of small business owners. According to new figures from the Retail Times, almost 90% of small retail firm owners felt burnt out in 2024, while the percentage of hospitality and tourism business owners that experienced the same was nearly 80%.

Data from recent InsureandGo research paints a similar picture. According to the survey, more than 5.5 million small business owners are too overworked and financially stretched to take time off, with over a third saying that they feel unable to take a two-week holiday and almost a quarter revealing that they haven’t been on holiday abroad for years.

Equally as revealing is research from FreeAgent that shows that almost 80% of small business owners continue to work through illness as a result of the demands of their business, with a lack of formal workplace support system contributing to significant levels of burnout.

At the same time, a new study from Sifted shows that over half of start-up founders had experienced burnout in the last 12 months, with almost 50% saying that their mental health was bad or very bad. Over 80% of founders revealed that they had experienced high stress.

Investing in staff mental health and how alternative finance can help

The numbers on small business owner burnout are unequivocal and it is easy to understand why they are so high. So far 2025 has offered little respite for bosses, with the increase in employer NICs and the national living wage the latest developments to squeeze margins.

Investing in workplace wellbeing is far from easy at present but such a move is clearly much needed. How can small business owners spend while safeguarding cash flow? This is where alternative finance can help.

Small business lending from traditional sources remains subdued as Q1 draws to a close, with 65% more SMEs experiencing difficulty in accessing finance from high-street banks. As a result, alternative lenders have become 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.

Small firm finance options for funding workplace wellbeing investment

While it was widely flagged that the Spring Statement would offer little for small firms, that it has feels like another disappointment for business owners, most of whom were hoping for something to relieve the pressure. Instead, they’ll have to put their own plans into action for addressing stress and burnout.

However, doing so and balancing investment in workplace wellbeing, whatever form it takes, with safeguarding cash flow is far from easy. This is why 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.