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One in seven bosses (13.6%) revealed they felt unable to cope with work pressures, according to the Association of Chartered Certified Accountants (ACCA) SME Tracker for March 2021.
The survey reported data from accountants representing 6,000 SME clients and unearthed a worrying trend for SMEs to “bury their heads in the sand” when it comes to forecasting their financial requirements and applying for loans to fund the reopening of their businesses and trading for the next 12 months.
Generally, 24% of respondents said their mental health was worsening, due to the stress and challenges of keeping their businesses afloat amid the global pandemic.
Accountants said that more than one-third (37.5%) had not considered how to fund the coming months when it is hoped that trading will resume, requiring adequate cash flow.
A further 50% of respondents claimed they were only “confident enough” to borrow up to 15% of their net earnings to fund continued trading – revealing a “reluctance” to take on more debt in an unpredictable situation.
Claire Bennison, head of ACCA UK, said: “Small business owners have faced the most challenging year imaginable to save their businesses and it’s distressing that so many are facing mental health issues.
“Sadly, among all the announcements in the Spring Budget, there was no mention of any measures to help the business community with their wellbeing, which was a big disappointment.”
