Business loan scheme could worsen mental health of Britain’s business leaders

Business loan scheme could worsen mental health of Britain’s business leaders
Business loan scheme could worsen mental health of Britain’s business leaders

Categories :

By citiesabc news - Mar 30, 2020
Business loan scheme

Business loan scheme could worsen mental health of Britain’s business leaders

Government's business loans will have considerable mental health consequences for decision makers potentially tethered to life-long business debt

Mental health treatment specialists Smart TMS discuss impact of government’s support plan on mental wellbeing of entrepreneurs and key decision makers across Britain

During what is likely the most turbulent and troubling period for the majority of the UK's businesses, the government's business interruption loans may simply exacerbate the existing financial pressures and mental health consequences facing Britain's entrepreneurs.

Over 99% of all of Britain's businesses are made up of small and medium sized companies with less than 250 employees, a huge portion of which will have no choice but to apply for the government's recently announced business interruption loans to prevent their collapse.

One of the key caveats of such loans is that business owners may be forced to become the personal guarantor for any loans totalling over £250,000. However, a significant portion of small and medium sized businesses will likely need to apply for well in-excess of the £250,000 threshold, given that around 245,000 SMEs in the UK employ over 10 people - with the average turnover of a business of this size being nearly £3million. This results in the founders and entrepreneurs most in need of these business loans having to take significant personal financial burdens which are likely to have serious mental health consequences.

This news coincides with new data on mental health in the professional community from mental health treatment specialists Smart TMS which reveals the extent to which Britain's entrepreneurs are already struggling with mental health challenges. The added pressure of potentially losing one’s personal possessions, finances and livelihoods as a result of business loans is certain to cause significant mental health consequences amongst Britain’s huge community of entrepreneurs and professionals:

· Over 1 in 5 (22%) of ABC1 professionals feel they cannot take time to prioritise their mental wellbeing as it would be a detriment to their business

· 3 in 10 (29%) of ABC1 professionals suffer unmanageable levels of anxiety and stress as a result of their job

· Almost 3 in 10 (28%) of ABC1 professionals feel they cannot discuss their mental health concerns with their peers for fear of judgment or loss of reputation

· Over 1 in 5 (21%) of ABC1 professionals have not sought mental health treatment or support because treatment would take too much time

Gerard Barnes, CEO of Smart TMS, offers the following commentary on the mental health struggles faced by many entrepreneurs and professionals as a result of Coronavirus and discusses the impact it could have on their mental wellbeing:

“Smart TMS’ research shows that a truly startling number of professionals are suffering severe mental health issues from the expectations and pressures that come out of their work; the added pressure of the circumstances brought about by Coronavirus mean that mental wellbeing of Britain’s entrepreneurs and professionals is likely to be further negatively impacted . Founders and entrepreneurs are already under huge pressure to keep their business afloat and keep people employed within it – potentially having to personally guarantee loans essential to the businesses survival will make this situation even more acute.

It is vital for everybody, especially those who are entrepreneurs or professionals who endure huge amounts of stress and who carry a great deal of responsibility on their shoulders, to understand that they are likely prone to depression, and should ensure that they are in a position to seek help and treatment if needed.”

Tags

Mr. Pradeep Multani, President PHDCCI India, On Dinis Guarda YouTube Podcast: Business Opportunities That Indian Markets Hold For Global Investors

Mr. Pradeep Multani, President PHDCCI India, On Dinis Guarda YouTube Podcast: Business Opportunities That Indian Markets Hold For Global Investors

May 27, 2022
Blockchain-Powered Property And Tourism Ecosystem LynKey Host Gala Dinner In Dubai

Blockchain-Powered Property And Tourism Ecosystem LynKey Host Gala Dinner In Dubai

May 26, 2022
Blockchain-Powered Property And Tourism Ecosystem Lynkey Discusses The Future Of NFTs And Metaverse At WBS In Dubai

Blockchain-Powered Property And Tourism Ecosystem Lynkey Discusses The Future Of NFTs And Metaverse At WBS In Dubai

May 25, 2022
World Coffee Alliance (WCA) Announces Panel At WCA Technocoffee Innovation Series: Building Trust Through Digital Identity “A Question Of Sovereignty?” On 26 May

World Coffee Alliance (WCA) Announces Panel At WCA Technocoffee Innovation Series: Building Trust Through Digital Identity “A Question Of Sovereignty?” On 26 May

May 24, 2022
The Foundations Of Blockchain At Dinis Guarda Youtube Podcast

The Foundations Of Blockchain At Dinis Guarda Youtube Podcast

May 20, 2022
How To Achieve Carbon Neutrality By 2050

How To Achieve Carbon Neutrality By 2050

May 19, 2022
Dubai’s Museum of the Future and Binance NFT Launch The Most Beautiful NFTs in the Metaverse

Dubai’s Museum of the Future and Binance NFT Launch The Most Beautiful NFTs in the Metaverse

May 18, 2022
Andy Warhol’s Pop Art Queen Goes On Sale To Mark Platinum Jubilee

Andy Warhol’s Pop Art Queen Goes On Sale To Mark Platinum Jubilee

May 16, 2022
These Are The Most NFT Obsessed States in America

These Are The Most NFT Obsessed States in America

May 13, 2022
NFT Artist Andrea Bonaceto To Transform Oxford Street With Monumental Interactive Digital Exhibition In Partnership With W1 Curates

NFT Artist Andrea Bonaceto To Transform Oxford Street With Monumental Interactive Digital Exhibition In Partnership With W1 Curates

May 13, 2022