Research from MoneySuperMarket has shown that small business owners find it hard to have difficult conversations with their employees and plan to set firmer work boundaries in 2026. The poll of 250 UK sole traders and small business owners reveals that four in ten (42 per cent) felt burnt out by the end of 2025, and as a result, more than half (51 per cent) are resolving to change their work-life habits in 2026.
One in three (33 per cent) small business owners say that running their own business is harming their mental health. And even though six in 10 (60 per cent) feel that they’re already striking a healthy work-life balance, nearly half (47 per cent) say they want to set stricter working hours and 46 per cent plan to delegate more.
The survey also reveals that nearly three-quarters of UK small business owners (around 4.16 million) believe they are good at managing their employees, however many say they struggle with difficult conversations.
One in three dread giving feedback, and one in four fear discussing pay. While many business owners dread difficult conversations, 58 per cent (excluding sole traders) expect to be able to offer staff pay rises in 2026, and a further 86 per cent believe they will not need to make redundancies this year. This suggests that, despite concerns about tackling sensitive topics, business owners are starting 2026 from a position of relative confidence.
Whilst UK small business owners are concerned about their staff, the survey highlighted a gap in protection, with just 6 per cent (around 9,500) of small business owners having life insurance in place that protects staff wages in the event of the owner’s death.
“Life can be unpredictable, and when the unavoidable happens, it’s important that small business owners and their employees, are protected,” comments Alicia Hempsted, Business Insurance Expert at MoneySuperMarket. “This includes planning ahead for a range of scenarios and covering all circumstances. Having small business owner life insurance means that employees will be protected if the worst happens to the business owner.”
