Fifth of Scots small business owners report negative mental health impact of financial pressures

More than a fifth of small business owners in Scotland report feeling the brunt of the rising cost of living on their mental health as well as their bottom lines, according to research from HSBC UK, which is encouraging such bosses to tap into sources of support.

Some 21 per cent of those surveyed north of the Border said cost-of-living pressures are hampering their wellbeing, with rising inflation cited as the main financial threat to their business (46 per cent), followed by customers buying less (36 per cent), and rising energy costs (56 per cent). The lender also found that about half of respondents reported not opening up to anyone – not even friends or family – about the impact on their business.

Behavioural psychologist Jo Hemmings said business owners “shouldn’t see talking through their personal or professional concerns as any kind of admission of failure… They are not alone and I’d urge those feeling the pressure of running a small business at this difficult time to talk through their challenges with professionals who can provide practical help, including their bank.”

HSBC UK said its early warning signs team is trained to identify customers that could be experiencing financial difficulty, but the organisation’s head of business banking Peter McIntyre also encouraged business owners to contact it if they are worried about their financial situation. He said: “Owners are at the helm, so it’s no surprise that navigating cost challenges is having an impact on their own personal wellbeing. The good news is that when customers engage with us early on they are more likely to avoid going into financial difficulty.”