Stress Awareness Month in April is a timely reminder that while self-employment offers benefits such as flexibility, it can also carry a growing psychological cost.

A recent study by Markel Direct, small business insurance specialists, asked 1,000 UK small business owners and sole traders to share their experience on work-life balance and the hidden costs of being their own boss. The survey found that nearly half (48%) of business owners have considered quitting their businesses due to stress, with 58% reporting burnout.

What causes stress and burnout in the self-employed?

Some of the key factors affecting the self-employed include:

Burden of being “always on” - Although a driver of moving to self-employment is the flexibility it provides, without having a clearly defined “working day”, many self-employed people struggle to switch off. The data found that 57% regularly work beyond standard hours and 40% face out-of-hours client expectations.

Over time, this constant perceived availability, without the boundaries of structured work hours, reduces downtime and limits opportunities to properly recharge.

Financial pressures - Unlike salaried employment, self-employment often means carrying the full responsibility for generating income, covering overheads and planning for unpredictable months.

A third of small business owners said they do not feel financially secure, and 48% feel they can’t afford to take time off from their business. This highlights how the pressure to sustain cash flow can drive longer hours, fewer breaks and higher stress levels.

Working in isolation - While three-quarters of small business owners and sole traders enjoy working for themselves, nearly 4 in 10 struggle with the isolation it brings. Without colleagues to share responsibility or provide reassurance, everyday pressures can feel heavier and more personal. Dealing with this can feel overwhelming, which can lead to increased stress levels.

Health taking a backseat - Being your own boss can mean that you put your own wellbeing at risk. A concerning 44% reported that they are sleeping less than the recommended amount and 6 in 10 skip medical appointments or exercise due to work.

When rest and preventative care are not prioritised, it can have a knock-on effect on energy levels and physical health, which can then impact mental wellbeing, making stressful situations harder to manage and allowing pressure to build.

What are the warning signs that a self-employed individual is nearing burnout?

Dr Katie Barge, Chartered Psychologist, explains that burnout rarely happens overnight and there are some indicators to look out for.

She says: “Some of the key warning signs of someone on the path to or experiencing burnout include persistent fatigue, irritability, reduced concentration, loss of enthusiasm for tasks that once felt engaging and increasing detachment from work.

“They may also experience difficulty in switching off, disrupted sleep and a sense of dread at the start of the day.”

Chartered Psychologist shares six smart steps to manage stress as a business owner

To help mitigate burnout and manage stress levels, Dr Barge recommends the self-employed implement the following strategies:

Establish fixed working hours and protect them. You can do this by ensuring the workday has a clear start and finish, make sure this is communicated to clients.
Take structured breaks throughout the day to prevent cognitive overload and maintain focus. Make sure you don’t skip lunch and aim to include other 10–15 minute breaks to give yourself space away from work, even if it is just to grab a hot drink.
Schedule regular restorative activity, whether that is exercise, time outdoors, mindfulness or creative hobbies.
Review workload weekly to identify pressure points, adjust priorities and prevent taking on more than capacity.
Break large tasks into manageable steps to reduce overwhelm and maintain a steady sense of progress.
Build in short recovery periods after intense projects to reset energy levels before taking on new demands.

Despite burnout being an issue, most self-employed people are happier working for themselves

Whilst the research shows that feeling burnt out is becoming increasingly common amongst business owners, the majority remain strongly committed to self‑employment and feel it was the right choice.

75% of respondents advised that they genuinely enjoy being their own boss, and 7 in 10 felt self-employment is more fulfilling than working for someone else.

Rob Rees, Divisional Director at Markel Direct, said: “Small businesses continue to play a vital role in the UK economy, and our research highlights the determination and enthusiasm of self‑employed people across the country. Although burnout and the pressures of running a business pose significant difficulties, most entrepreneurs stay dedicated to their path, experiencing more satisfaction and happiness from working independently.”

You can view the full study here: https://www.markeluk.com/articles/the-true-cost-of-being-your-own-boss