More than three in four small business owners in London are losing sleep over the pressures of running a company in today’s climate, according to new research from Novuna Business Finance.
The latest findings show that 79% of small business owners in the capital say worries about day-to-day business issues keep them awake at night, with economic volatility and geopolitical uncertainty emerging as the biggest concern. Half of respondents (50%) cited market instability as their primary source of anxiety.
The data suggests that while many London firms remain ambitious, the strain of operating in a fragile economic environment is taking a tangible toll on entrepreneurs.
Beyond macroeconomic instability, 37% of London business owners said they were worried about further tax increases and interest rate hikes. Concerns over tax have intensified since the rise in employer National Insurance contributions that took effect last April, adding to operating costs for thousands of firms.
Cashflow pressures also remain front of mind. Almost a quarter (23%) of respondents said managing cashflow keeps them awake at night, while 20% pointed to business rates as a major worry.
Customer retention is another key stress factor, with 31% reporting broken sleep over concerns about holding on to existing clients in a competitive and uncertain marketplace.
The findings come just one month after Novuna reported a six-month high in London small business growth expectations. Around 40% of London firms predicted growth for the first quarter of 2026, significantly above the national average of 27%.
However, the research indicates that ambition and stress often go hand in hand. Businesses forecasting significant expansion were the most likely to report sleepless nights. Among those predicting strong growth, 85% said business worries were affecting their sleep, up from 75% two years ago.
By contrast, 73% of business owners not forecasting growth reported similar stress, suggesting that while pressures are widespread, high-growth environments can intensify anxiety.
Workforce challenges are also weighing on business leaders. Seventeen per cent said employee shortages were a key concern, while 11% worried specifically about recruitment difficulties in securing skilled staff.
Meanwhile, despite renewed discussions around an EU reset and closer ties with Brussels, nearly one in five (19%) London business owners said the long-term impact of Brexit continues to affect their business and still keeps them awake at night.
“Sleepless nights are not confined to struggling businesses”
Joanna Morris, Head of Insight at Novuna Business Finance, said the data highlights the human cost behind headline growth figures.
“At the start of 2026 we saw a rise in London small business growth outlook. That said, our latest data suggests that this comes at a human cost for many business owners, many of whom take their business worries home with them and struggle to switch off,” she said.
“When business owners are kept awake at night working through enterprise issues, we gain a sense of the intensity of some of these concerns for entrepreneurs. Our research suggests that sleepless nights are not just confined to businesses that are struggling to grow. Managing fast-paced or significant growth can also be stressful for established businesses.”
The findings are based on the latest Business Barometer study from Novuna Business Finance, which surveyed 1,000 small business owners across the UK to identify the issues they consider serious enough to lose sleep over.
While London’s small business community continues to show resilience and ambition, the data underscores the emotional and operational pressures that accompany entrepreneurship in a period marked by inflation, policy uncertainty and global instability.
