Economic volatility keeps UK small business owners awake at night

More than three in four small business owners (78%) say worries about their business keep them awake at night, as concerns over economic volatility and geopolitical uncertainty hit record levels, according to new research from Novuna Business Finance.

The latest findings from Novuna’s long-running Business Barometer reveal that general economic volatility is now the single biggest concern for UK entrepreneurs, with 52% saying it is a major cause of anxiety, up from 48% two years ago. Fears around tax and interest rates have also risen sharply over the same period, climbing from 28% to 42%, reflecting the impact of rising costs and policy changes, including last year’s National Insurance hike for businesses.

Other pressures have intensified too. Worries over red tape have increased from 21% to 30%, while concerns around compliance and regulation (25%) and business rates (22%) have also grown. By contrast, concerns over managing cashflow and retaining business have remained largely unchanged over the past two years.

Despite ongoing discussions about resetting the UK’s relationship with the EU, the legacy of Brexit continues to weigh on some firms. Around one in seven small business owners (15%) say the long-term impact of Brexit still keeps them awake at night.

The Business Barometer, which has tracked small business growth outlook every quarter for the past 11 years, surveyed a nationally representative sample of 1,000 business owners. Participants were asked which business worries most affected their sleep, offering a measure of the issues they find hardest to switch off from.

The research highlights clear regional differences in stress levels. Business worries were most likely to disrupt sleep in the South West (82%), North West (81%), Yorkshire (81%) and the South East (80%).

By sector, the pressure appears greatest in manufacturing (89%), construction (87%), transport and distribution (87%), and agriculture (84%), where business owners were most likely to report sleepless nights linked to business concerns.

The findings challenge the assumption that it is only struggling businesses that experience the highest levels of stress. In fact, owners of growing firms were more likely to report being kept awake at night.

Among small business owners forecasting significant expansion in the first quarter of 2026, 85% said business worries affected their sleep, up from 75% two years ago. In comparison, those not expecting growth were less likely to report disrupted sleep, at 73%.

Joanna Morris, Head of Insight at Novuna Business Finance, said: “At the start of 2026 we saw the first slight rise in small business growth outlook for 18 months.

“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.

“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. Further, 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. Among those enterprises surveyed that predicted significant expansion this quarter, there was a significant rise in the percentage of business owners that said business worries kept them awake at night.”