LONELINESS RISES AMONG LONDON ENTREPRENEURS AS NEW DATA REVEALS HIDDEN COST OF STARTING A BUSINESS

December 8, 2025 NewsDesk British Business Bank, business isolation statistics, Co-founder of Kanazawa Louise McCoy, Co-founder of Kanazawa Takashi Mori, Coal Drops Yard vendors, entrepreneur mental health, Kanazawa Japanese Curry Bread, London entrepreneurs, loneliness in entrepreneurship, Louise McCoy Start Up Loans, Managing Director of Start Up Loans Products, mentoring for entrepreneurs, microbusiness challenges, Ryota Hitomi, small business resilience, SME leadership challenges, Start Up Loans Company, UK small business owners, UK start-up ecosystem, work-life balance for founders, YouGov survey

As the festive season slows the tempo for many office workers, a new YouGov survey suggests that the run-up to Christmas does little to ease the strain on Britain’s smallest business owners. The research, commissioned by the Start Up Loans Company, part of the British Business Bank, reveals that 38% of London’s small business owners feel lonely or isolated while running their business, underscoring a persistent and often overlooked emotional burden within the UK’s entrepreneurial ecosystem.

Across the country, isolation is highest among microbusiness owners—those typically operating alone—where 56% report experiencing loneliness. The contrast with leaders of medium-sized businesses (37%) and small businesses (38%) highlights a structural issue facing entrepreneurs who often shoulder the operational, financial and strategic pressures without the support networks enjoyed by larger firms.

The survey indicates that this strain is most acute in the earliest stages of building a business. Nearly two thirds (65%) of owners trading for less than a year say they feel lonely, with the figure falling sharply among those trading for 10–15 years (31%) and those established for more than two decades (40%). While experience tends to build resilience, the early years remain a high-risk period not only financially but emotionally.

The Emotional Weight Behind Entrepreneurship

For London-based founders, the pressures extend beyond isolation. Two thirds (66%) say they feel the constant mental load of being responsible for their business success, and 61% say they wish they had someone to turn to for support. Nearly half (49%) struggle to maintain a healthy work-life balance, while 38% admit they sometimes wish they held a less senior role due to the loneliness associated with leadership.

One business owner who understands this reality is Ryota Hitomi, co-founder of Kanazawa, a Japanese Curry Bread food vendor at Coal Drops Yard. He describes an experience familiar to many entrepreneurs.

“Even though I co-run my business with my life partner, I can feel lonely when managing our business. Last year, I quit my primary job to run the operations of Kanazawa full time, which started as a side hustle. We now have a food truck operating at one of London’s most popular food markets and an online shop. We’re also opening a permanent space in Angel in early 2026, so it’s a very busy time for us as we enter a new chapter. My partner, who works part-time, is responsible general admin and experimenting with new recipes, and I am handling 80 percent of the business independently, which can be lonely at times.

“Fortunately, at Coal Drops Yard market, I am surrounded by other market traders, and we are all friends. In fact, one of my closest friends at the market also runs her business with her life partner and we have a lot in common – we both discuss everyday challenges together, and sometimes we both need a trustworthy friend to vent to.

“During workdays, I have the opportunity to catch up with others in the same industry and discuss concerns with friends who are able to relate to me when I can’t speak to my partner, which I am very grateful for.”

His experience reflects a wider pattern. Entrepreneurs frequently build informal networks that become crucial sources of emotional and professional support. Many respondents said they manage loneliness by spending time with family and friends (48%), taking breaks (33%), connecting with other business leaders (29%) or focusing creatively on future business planning (29%).

The Upside of Going It Alone

Despite the challenges, the findings reveal a strong theme of personal development. Nearly three quarters (74%) of London business owners say running their business has made them more resilient, and 77% value the responsibility that comes with leadership. A further 78% have built new friendships and connections through their business, with many reporting increased confidence in their ability to face difficulties independently. Seventy-two percent feel more connected when they know others share similar experiences.

Louise McCoy, Managing Director of Start Up Loans Products, said: “Running your own business is one of the most rewarding things you can do, but it can also mean spending a lot of time working on your own and doing something very different to most friends and family. As our research reveals, this can often have a hidden emotional cost that often goes unseen.

“Unsurprisingly, the first year of starting a business in particular can be isolating and that’s where mentoring and having a wider support network is so important. Yet, while loneliness is common, the findings also highlight a powerful story of resilience, growth and connection among UK entrepreneurs.

“At Start Up Loans, we’re proud to support entrepreneurs not just financially, but by helping them find the networks and confidence they need to thrive, be that through business mentoring or in-person events.”

Start Up Loans continues to offer fixed-interest loans of up to £25,000, along with mentoring and guidance, to support founders navigating the personal and professional challenges of entrepreneurship. The findings reinforce the importance of community and mentorship in strengthening the UK’s small business landscape, particularly during the most vulnerable early stages.

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