The latest Aldermore Future Attitudes study has revealed that a third (33%) of bosses at UK small and medium-sized enterprises (SMEs), equating to 1.81 million* firms with fewer than 250 employees, have personally suffered from anxiety, depression or another kind of mental health problem in the past five years.
The report, which surveyed over a thousand business decision-makers across the UK, found that of those business leaders who have struggled with poor mental health, over three quarters (78%) believe this has affected their ability to work effectively. A further three fifths (61%) also admitted that their involvement in their business was a factor that contributed towards their problems.
The most common catalyst for mental health issues amongst SME bosses was a loss of business revenue or decreasing profits (40%). This was closely followed by key debtors not paying on time (30%) and insufficient working capital (29%).
Top five business issues that impact most on mental health
|Business issues||% of SME leaders|
|Loss of business revenue or decreasing profits||40%|
|Key debtors not paying on time||30%|
|Insufficient working capital||29%|
|Increase in competition||27%|
|Issues unrelated to my business (e.g. family or friends)||27%|
It is not only the most senior executives that are affected. Poor mental health can be a company-wide phenomenon. Aldermore’s figures show that as a result, an average of 28 working days are lost every year, equating to over 185 hours**, across the workforce of each SME.
Despite this, almost a third (30%) of UK business leaders believe that their organisations do not provide adequate mental health support in the workplace. Nearly two in five (37%) also think the government could do more in this space.
Carl D’Ammassa, Group Managing Director, Business Finance at Aldermore, said “Due to their size and the relatively limited resources at their disposal, it is no surprise that mental health issues have a proportionally larger impact on smaller companies than larger organisations. Our research reveals that three quarters of SME bosses in the UK believe that there is a negative stigma surrounding mental health problems in the workplace. More must be done to overcome this and encourage those suffering from poor mental health to step forward and seek support.”
“That being said, it is encouraging that over four fifths of business leaders describe their workforce as mentally fit and happy. A half also offer a formal staff well-being strategy that proactively encourages a healthy work/life balance including employees taking regular breaks.”
Jo Maddocks, Chief Psychologist at JCA Global, a business psychology firm, said “There is clearly something missing as the world of work becomes ever more complex, demanding and stressful. More organisations than ever are seeking support for their employees in terms of building their emotional resilience, mental health and well-being in the workplace. A longer-term solution would also be for leaders to create work environments that promote a positive working climate.”