One in three SME founders report worsening mental health, research finds
Virgin StartUp found the impact was particularly pronounced among founders from lower socio-economic backgrounds.
One in three (33%) UK small to medium-sized enterprise (SME) founders said their mental health had worsened over the previous six months, up from 18% in 2025, research from Virgin StartUp found.
Its Founder Barometer report found the impact was particularly pronounced among founders from lower socio-economic backgrounds, with 43% reporting worsening mental health compared with 15% of those from higher socio-economic backgrounds.
Financial pressures were also more acute among this group.
Just 27% of founders from lower socio-economic backgrounds said they felt financially confident, compared with 70% of those from higher socio-economic backgrounds.
Almost half (47%) of founders overall cited cost-of-living pressures as a major concern, rising to 59% among those from lower socio-economic backgrounds and 63% among founders in the North East.
The research also found a divide in perceptions of Government support.
Two thirds (67%) of founders from lower socio-economic backgrounds felt unsupported by the Government, compared with 33% of those from upper-middle socio-economic backgrounds.
Overall, 59% of founders said they did not believe the Government listened to small business owners.
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