A growing number of UK small business owners are struggling with exhaustion, isolation and loneliness, as rising costs and tax pressures push many to the brink and leave “break-even as the new benchmark”.
Entrepreneurship is often portrayed as freedom from the nine-to-five, but for many founders the reality is longer hours, blurred boundaries and constant decision-making with little or no support. Evenings, weekends and solitary working have become the norm, particularly for microbusinesses and sole traders who must juggle finance, HR, sales and operations alone.
Support organisations say the problem has worsened markedly over the past year. Christine Charitonos, founder of London-based culture and events company What Does Not, which supports people with mental health challenges, says isolation among one-person businesses is rising sharply.
“A lot of the people we work with run solo businesses and spend huge amounts of time alone,” she said. “We’ve seen a noticeable increase in loneliness and disconnection over the past year. It’s ironic that London is one of the busiest cities in the world, yet so many people feel cut off from others.”
Charitonos believes the shift towards remote and digital working since the pandemic has created efficiencies, but at the cost of human connection. “It may save time, but it also creates a deficit in real interaction, which will eventually have a wider societal cost,” she added.
Economic pressure is intensifying the problem. Sarah Gatford, a wellbeing coach based in Derby, says higher taxes and rising costs are compounding emotional strain.
“The extra tax burden is piling further stress on business owners,” she said. “Running a small business has always felt like swimming upstream, but now it’s more like rapids. Profit used to be the goal — for many, break-even is now the benchmark.”
She added that government rhetoric around supporting wellbeing does not align with how many founders feel. “It doesn’t feel like small businesses are being looked after. It feels like another false promise.”
Others say loneliness is often most acute in the early stages of building a business. Kate Underwood, founder of Kate Underwood HR and Training, argues that isolation is an unspoken reality of entrepreneurship — but one that can be mitigated.
“Founders need to build a support circle early, not when they’re already on the edge,” she said. “Identify mentors across finance, HR, marketing and sales. Write three names down today, and check in with them now, not later.”
Some business owners are increasingly turning to artificial intelligence not just as a productivity tool, but as emotional support. Colette Mason, author and AI consultant at Clever Clogs AI, says many founders are using AI as a non-judgemental sounding board.
“People aren’t just asking for AI copilots to scale faster,” she said. “They’re asking because they’re exhausted and isolated, and don’t feel safe admitting how hard things are. AI becomes the adviser who doesn’t judge, doesn’t invoice and doesn’t panic when you do.”
That shift, she argues, raises uncomfortable questions about the environment founders are operating in. “Why are business environments so hostile that owners would rather confide in an algorithm than a supportive human?”
Kate Allen, owner of holiday lettings firm Finest Stays, said the loneliness of running a business is most intense at the beginning. “For years I ran every department because the business was too small to hire. The mental load was relentless, often late at night, alongside solo parenting.”
Thirteen years on, the pressures have changed but not disappeared. “Now it’s managing a team, navigating constant regulatory changes and rising costs. What’s made the biggest difference is having a trusted support circle — other founders and advisers who understand the reality.”
For some, mentors have been critical to survival. Colin Crooks MBE, chief executive of Intentionality, said external guidance saved a previous business from collapse. “Friends couldn’t understand, staff needed reassurance I didn’t have, and clients couldn’t know how close we were to failing. A mentor helped me separate real crises from noise.”
Craig Bunting, co-founder of hospitality group BEAR, said responsibility itself can be isolating. “Ultimately the weight sits with you — people’s livelihoods, investors’ trust, long-term decisions. Isolation is where pressure does the most damage.”
He added that government policy could ease some of that strain. “Reducing VAT and fixing business rates would remove a constant source of anxiety, especially in hospitality. That’s what keeps founders awake at night.”
For Rachel Hayward, managing director of Ask the Chameleon, the key lesson is that asking for help is not a weakness. “I’m a business of one, so loneliness can be loud. But I’m not an island. A small, trusted group has been invaluable in keeping perspective.”
As pressures mount in 2026, many founders warn that without stronger community support and a more realistic policy environment, isolation among business owners will only deepen — with consequences not just for individuals, but for the sustainability of the UK’s small business economy.
