Scottish SME owners crank up overtime to survive
Aldermore Bank has found 11 per cent of Scottish small and medium-sized enterprise (SME) owners are working more than four extra hours a day, and the same percentage again are working more than five.
The lender – whose offering includes provides financing to SMEs – found that across the UK, the main causes of the increased time SME directors spent working included spending more time serving existing customers (27 per cent), working to reduce anxiety about the business’s future (21 per cent) and pursuing more new business opportunities (nearly a fifth). Among the top personal sacrifices was quality time with family, cited by about a third of respondents.
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Hide AdNearly half of SME owners described themselves as being “stressed or anxious” due to the pandemic. Nearly a third of SME directors were feeling nervous about what the next six months might mean for their business.
Meanwhile, the Institute of Directors (IoD) said Scotland has come in as the most negative area in the UK, with its regional economic confidence reading for the next 12 months coming in at -66 per cent.
IoD Scotland national director Malcolm Cannon said: “While we have seen some respite from the government given to a proportion of businesses and individuals, it is not a catch-all solution. More could and should be done to ensure this confidence doesn’t completely nosedive over the next six to 12 months.”
Aldermore said that while working longer hours was not necessarily damaging to an individual’s mental health, having an uneven work-life balance could affect performance and lead to fatigue and depression – and it has launched a mental health guide to help address the issue.
Tim Boag, group MD for business finance at Aldermore, said: “While it’s easy to assess the financial health of a business by looking through financial statements, it can be much harder to determine the mental wellbeing of staff.
“During this financially challenging and difficult period, director burnout is now a real risk for many overworked SME owners, so it’s vital that business owners and their employees take some time out and maintain a healthy work-life relationship.”
Motivation
However, a separate survey found that nearly half of small business owners in Scotland are making motivating staff and maintaining a happy workforce a top priority.
Hitachi Capital Business Finance said its new survey comes at a time of growing concerns regarding the mental health of the nation, with almost two in five UK adults reporting the pandemic had affected their wellbeing.
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Hide AdAs for steps taken regarding workplaces in Scotland to maintain a positive mindset, 15 per cent of bosses have organised motivational team meetings, and 12 per cent have initiated one-to-one pastoral calls with employees.
Joanna Morris, from Hitachi Capital Business Finance, said: “Our research shows that at this time especially, it is more important than ever for small businesses to manage both physical and mental well-being for themselves and their employees.”
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