Seven out of 10 small business owners (70%) have spent less time with family and friends while facing challenges caused by the cost-of-living crisis, according to a survey.
Half of entrepreneurs (47%) said their work/life balance had changed over the past 12 months and 34% said they have been forced to spend less time with a partner.
Before the cost-of-living crisis began just 23% said they had stopped work at Christmas.
But that figure has risen by 10% as more small businesses are set to close over the festive period so owners can recover from a tough year.
The rise has been called ‘The Bob Cratchit Effect’ after the character in A Christmas Carol, which was published 180 years ago this month.
Cratchit is an overworked and underpaid clerk of the miserly Ebenezer Scrooge and pleads with his boss for Christmas Day off to spend time with his family.
The endearing popularity of Charles Dickens’ Victorian ghost story has added the trimmings to a traditional Christmas enjoyed by millions around the world.
While economic uncertainty looms like the Ghost of Christmas Yet to Come, it seems the spirited message to prioritise family over money has been heard louder than ever.
The survey was conducted by digital practice The Accountancy Partnership, who polled 1,200 small business owners about their work and mental health over the past 12 months.
A total of 60% of small business owners said spending time with family and friends was the best way to cope with stress during the busy Christmas period.
Exercise was the second most popular choice, after spending time with family and friends, for 49% and 40% of those polled said walking helped with stress.
Mental health issues are a serious concern with anxiety being a condition 45% said they suffered to cope with while running their business.
Four in 10 admitted to suffering from burnout and 22% had struggled with insomnia.
A bleak statistic shows 30% of small business owners have become socially withdrawn because of running a business.
While 71% said coping strategies hadn’t changed, there has been an increase in keeping fit for 54% and 28% said they had started to practice meditation to beat stress.
Hopes of a fresh start in the new year seem to be fading as falling sales haunt 54% of small business owners, with 44% concerned about inflation.
Increased business rates are a concern for 27% and 25% admitted to being worried about rising energy costs.
Lee Murphy, managing director of TAP, who are based on Wirral, said: “Small business owners and entrepreneurs are working harder throughout the year.
“Spending time with loved ones is a more of a priority this Christmas. It is likely that this trend is not unique to the self-employed.
“If economic crises continue to shape our lives, the workforce will be committing more time away from family.
“The spirit of Christmas will grow stronger and an important period to renew relationships with missed loved ones.
“Our team have called the rise in small business owners taking time off at Christmas ‘The Bob Cratchit Effect’.
“Cratchit pleads with his miserly boss Scrooge for time off to spend with his family in Charles Dickens classic A Christmas Carol.
“The research suggests we are a nation of Cratchit’s and despite the concerns caused by the cost-of-living crisis, the ways of Scrooge have not been adopted.
Erin Thompson is a director of E.T Learning Solutions and has been based in Liverpool since moving from Rochester, New York, three years ago.
The 43-year-old said: “I’m working quite a bit in the lead up to Christmas, but I have drawn a firm line in the sand.
“I will be spending time with my family, visiting Christmas markets, watching movies and baking. There will be a lot of baking.
“Seeing family and friends has been a challenge this year and we’re always being conscientious with our money, but often we just don’t have the time.
“Socialising used to happen routinely on weekends but now it is when my spouse and I and friends are available.
“Being self-employed, there’s always a concern of a lean month when you’re doing it all yourself.
“The cost-of-living crisis has forced us to be very creative with handling unexpected expenses.
“You need to have foresight and plan, but you cannot pour from an empty cup.
“If you don’t rest and take time for yourself, you have nothing left to give and once your energy and caring goes, that’s a dangerous place to be.”
Callum Dee, 29, is a full-time director of The Bald Viking Beard Company, which he founded five years ago, and has been unable to pay himself since January.
The father-of-two will be focussing on his online sales to meet demand after sales at his market stalls dropped dramatically this year and is unable to take time off.
Married Callum, who lives in Welwyn Garden City, said: “I have had a bit of stress this year because I have been unable to pay myself and this has put pressure on the business.
“I will have a break from the markets because there are just four trading days left before the markets where I sell my products close until March.
“Sales at the markets have dropped even though footfall has not necessarily fallen, people just aren’t buying.”
Becky Harrison founded her soft-furnishings company Sew Versatile Sewing, based near Halifax in West Yorkshire, after becoming a self-employed seamstress nine years ago.
The 36-year-old said: “The cost-of-living crisis has meant everything’s a little closer to the wire, financially.
“It’s meant we’ve had to raise our prices on items, not to make a better living for ourselves but just to cover our increasing material costs and overheads.
“As purse strings tighten up, our target audience has narrowed. We make luxury items, so something that’s only purchased when there’s money to spare.
“It’s been harder work to find new leads and to get those leads all the way to the purchasing stage.”
Ella Wiggins, founder of Bristol-based digital marketing agency Good Beans, said: “We have always prioritised taking time off, not just at Christmas but throughout the year.
“Running a business is hard. There’s no real “off switch” and it’s hard to run a business if you’re always stressed.
“For that reason, we’ve always operated on a four-day week, all through the year.
“We’ve found that we’re at our best when we can take a day a week to catch up on life.
“If we really need to put a bit of extra time into the business, we have a buffer, meaning we can avoid evening and weekend working, which is so good for our mental health.”
Sarah Merrington, head of the mental health at Work programme at Mind, said: “We know it can be difficult to prioritise your mental health.
“If you’re a small business owner, you don’t have the support of employer mental health services and might have little time to spare to focus on yourself.
“The results expose a mental health crisis, with over half of respondents struggling with poor mental health in the last year, many experiencing insomnia, working long hours, and very rarely taking breaks – it’s a recipe for burnout.
“It’s so important that self-employed people have somewhere to go for help.
“That’s why, together with Simply Business, we have set up a free mental health hub which provides accessible, bespoke support, to enable the self-employed to make positive changes to their mental health.”
