The hidden cost of entrepreneurship: Why small business owners need support this Christmas

Christmas is generally portrayed as a time of connection and celebration, yet research from the charity Rethink Mental Illness suggests the reality can be more complex. 

In a survey of over a thousand people, 77% said they feel lonely and isolated even when surrounded by loved ones during Christmas, while 84% reported that their mental health worsens during this time of year. The festive period can bring these experiences into sharper focus, but for many, loneliness extends well beyond the holidays. 

In fact, new research from YouGov, commissioned by The Start Up Loans Company, reveals that nearly half (44%) of smaller business leaders say they have felt lonely or isolated while running their business. 

The issue appears to be particularly pronounced among microbusiness owners with fewer than 10 employees, who often work entirely alone. Among this group, 56% report feeling isolated while running their business. 

The early years are the hardest

These findings go some way to revealing the weight of responsibility many entrepreneurs carry. Nearly two-thirds feel the constant mental load of being responsible for their business success. 

This burden is often compounded by financial pressure; managing cash flow, chasing late payments, and securing funding aren’t just logistical tasks – they can be sources of anxiety that fuel the feeling of being pulled in numerous directions at once.

What’s more, around half (51%) admit they struggle to maintain a healthy work-life balance, while 37% sometimes wish they were in less senior roles due to the loneliness that comes with leadership.

But the research also offers some encouragement: feelings of isolation appear to ease with time and experience. Nearly two-thirds (65%) of business owners trading for less than a year report feeling lonely, but this drops considerably for those whose businesses have been running for 10 to 15 years (31%).

A wider loneliness crisis

The challenges facing small business owners sit within a broader national trend. Research from PBE Economics, a UK-based think tank focused on improving wellbeing, shows that the proportion of adults reporting feeling lonely “often” climbed from 9% in 2017 to an estimated 9.6% in 2024. That represents approximately 5.3 million people suffering from chronic loneliness across the UK – a jump of 786,000 in just six years.

While PBE’s findings note that 84% of people enjoy a boost to mental wellbeing from spending time with loved ones during the holidays, they also acknowledge that for some — including a great number of small business owners — the next few weeks will be marked by spells of isolation and loneliness. 

What can be done?

Despite the challenges, YouGov’s research shows many entrepreneurs are finding ways to combat isolation by building strong support networks and developing healthy routines. 

More than half of business owners prioritise spending time with family and friends outside of work, while a similar number focus on personal wellbeing through exercise and hobbies. Many also seek connection within the business community itself. Beyond local networking, professional bodies like the Federation of Small Businesses (FSB) and mental health charities like Mind offer tailored resources that can be a huge help. 

The community connection

Small businesses sit at the centre of many local economies, but the people behind them often operate with less support than we assume. YouGov’s research shows that many founders work alone, carry a heavy sense of responsibility, and experience isolation even during periods traditionally associated with social connection.

At the same time, running a business can create opportunities for new relationships — 72% say they’ve made new friendships and connections through their work — suggesting that community interaction has an important role to play in easing some of the pressures owners face. 

December is a useful reminder that supporting small businesses isn’t only about spending money. For consumers, it’s also about recognising the individuals behind the counter. 

For the owners themselves, the message is even more critical: your business relies on you being well. Affording yourself permission to step away from the counter, even briefly, to reconnect with your own support network, could perhaps be the most valuable investment you make this season.