The True Cost of Being Your Own Boss

This is the aspiration for many people when they decide to go into self-employment, drawn in by the promise of freedom, flexibility, and control. However, for small business owners across the UK, that dream often comes at a steep cost. Behind the scenes, long hours, financial pressure, and blurred boundaries between work and rest are taking a significant toll on mental well-being.

At Markel Direct, we examined the growing challenge of overworking among the self-employed in the UK. We surveyed 1,000 self-employed workers to uncover the mental cost of running a small business, and what it takes for entrepreneurs to truly rest and recharge. Our research explores key factors like how much time they take off, whether they're able to switch off from work during downtime, and the hidden pressures that come with managing a business.

Overworking is the new normal

Flexible working is meant to offer balance and autonomy to the working day, and for many this has materialised. Being your own boss means you set your own hours - and for 40% of respondents, this turned out to be fewer hours than the average working week for those in traditional employment. Additionally, more than half of respondents (56%) advised that they always or often manage to take a lunch break.

However, this scenario isn't widespread and many self-employed individuals are finding that flexibility has evolved into something quite different. What began as a tool for freedom is increasingly becoming an expectation to be constantly available.

Our data revealed that over half (57%) of respondents often or always worked beyond their normal hours, so it seems that extended days have become the standard rather than the exception. Surprisingly, one in ten respondents admitted to working more than 50 hours a week. As a result, they're operating beyond typical limits, especially in traditional employment, where the average working hours are 36.5 per week. Whilst there is a question about whether this is sustainable or not, it highlights the strong work ethic, commitment and dedication of the self-employed to their craft.

Client expectations can add another layer to the pressure and play a big role in business owners not getting to enjoy their downtime. A concerning four in ten workers felt that they needed to be reachable outside of their normal hours, and one in ten stated that this expectation never lets up. This creates an environment where the working day doesn't end and fades into personal time, often without clear boundaries. Surprisingly, 36% of respondents admitted they only get to spend 1-3 hours on their hobbies per week, and our study discovered that men found it harder to draw the line between working hours and personal time. They reported slightly higher rates of overworking at 59%, compared to 53% of women. Clearly, in self-employed workplace culture, overextension is becoming the default. While the draw of flexibility exists on paper, in practice, it often translates into a blurred work-life divide and an always-on mindset, instead of creating space for balance. By not taking the appropriate time to rest, this can do more harm than good, both for you and your business.

How can the self-employed put boundaries in place to separate work life and personal life?

Our expert says

"It is important that those that are self-employed, or even those that work from home in general, protect their non-working time, separating workspace from living space where possible. Make sure that there are limits put in place when it comes to client communication, and if possible, have a work phone to ensure you are not being disturbed outside of your scheduled working hours.

"Establish some routines for starting and ending the workday, just as you would have with traditional employment. Although it may seem rigid and negate some of the benefits of self-employment, it is great at reinforcing the psychological separation between work time and home time and reduces the risk of overworking."

 Dr Katie Barge, Chartered Psychologist

Does self-employment equal burnout?

Overworking can easily lead to burnout, and it has become one of the defining challenges of modern self-employment. Burnout isn't just an occasional side effect of a tough project anymore; it's becoming a built-in risk of modern self-employment. Where many entrepreneurs hoped that working for themselves would deliver greater autonomy, they're finding it often brings relentless pressure instead.

Dr Barge explains why burnout is particularly prevalent in self-employed individuals, she says: Although it comes with a lot of perks, such as more flexibility, self-employment often also comes with financial uncertainty, blurred work-life boundaries, and a strong sense of personal responsibility for outcomes. These constant pressures, particularly when handled alone, create sustained cognitive and emotional load, which increases vulnerability to exhaustion and disengagement.

In fact, four in ten self-employed workers stated that they have experienced burnout when running their own business. However, burnout isn't always easy to identify, Dr Barge adds," Some of the key warning signs of someone on the path to or experiencing burnout include persistent fatigue, irritability, reduced concentration, loss of enthusiasm for tasks that once felt engaging, and an increasing detachment from work. They may also experience a difficulty in switching off, disrupted sleep, and a sense of dread at the start of the day.

The strain is so severe that a third of respondents have considered quitting altogether due to stress and exhaustion. This is especially disappointing for those who turned to self-employment seeking better mental health, as 22% said their wellbeing hasn't improved compared to when they were employed.

The data suggests that there is a persistent gap between the autonomy they hoped for and the realities of constant responsibility that comes with running a business, where blurred boundaries make it harder to switch off, and mental health suffers as a result.

Dr Katie Barge shares some strategies to help mitigate burnout and manage stress levels

Tip #1

Establish fixed working hours and protect them. You can do this by ensuring the workday has a clear start and finish, make sure this is communicated to clients.

Tip #2

Take structured breaks throughout the day to prevent cognitive overload and maintain focus. Make sure you don't skip lunch and aim to include other 10-15-minute breaks either side too to give yourself space away from work, even if it is just to grab a hot drink.

Tip #3

Keep defined boundaries between professional and personal time, such as turning off notifications outside working hours.

Tip #4

Schedule regular restorative activity, whether that is exercise, time outdoors, mindfulness, or creative hobbies.

Tip #5

Review workload weekly to identify pressure points, adjust priorities, and prevent taking on more than capacity.

Tip #6

Break large tasks into manageable steps to reduce overwhelm and maintain a steady sense of progress.

Tip #7

Build in short recovery periods after intense projects to reset energy levels before taking on new demands.

However, if the damage has already been done, Dr Barge suggests the following forms of professional support or intervention: Evidence-based psychological therapies, such as cognitive-behavioural approaches, can help individuals understand the patterns contributing to burnout and develop healthier coping strategies.

Coaching or supervision can also provide structure, accountability, and perspective. In more severe cases, a period of reduced workload combined with therapeutic intervention is often necessary for recovery.

Lou Quenzer, certified coach and founder of Comma & Thread, adds: Burnout often takes hold when people feel disconnected from their purpose, their boundaries, or the sense that their work matters. And when pressure becomes constant, it's easy to get lost or overwhelmed. Coaching offers a pause that helps people step out of the churn and reconnect with what matters. It gives people a space to be heard, held accountable, and supported. It helps them see what's driving the strain, feel seen rather than overstretched, and reconnect to what is meaningful. With the right support, people can rebuild boundaries, rediscover purpose, and recover a healthier way of working that lightens the load and makes their work sustainable and enjoyable again.

Industries and regions that are burning out the most

While burnout is a challenge amongst the self-employed as a whole, certain industries are feeling the strain more than others. Architecture, engineering, and building industries emerge marginally as the hardest hit, with 58% of professionals in this sector reporting burnout. In second spot sits HR, where tasks can involve dealing with the emotional labour of layoffs, grievances, conflict resolution and handling complex regulations.

Top 5 industries experiencing burnout while working for themselves

#

Industry

% of those who have
experienced burnout while
running their business

01

Architecture, Engineering & Building

58.1%

02

HR

57.9%

03

Arts & Culture

50.0%

04

Sales, Media & Marketing

44.8%

05

Retail, Catering & Leisure

44.7%

Unfortunately, burnout isn't confined to just one corner of the UK; it's a nationwide problem. Topping the list is Scotland, where 54% of respondents admitted that they have reached burnout whilst running their business. Close behind in second spot was the East Midlands (50%), followed closely by the South East (49%). Even in areas with the lowest rates, such as Yorkshire and the Humber, nearly a third have struggled with burnout.

UK region where the most self-employed have experienced burnout

01

Scotland 54%

06

North West 39%

08

Northern Ireland 38%

11

West Midlands 32%

10

Wales 33%

05

South West 39%

07

North East 38%

12

Yorkshire & The Humber 29%

02

East Midlands 50%

04

East of
England 48%

09

Greater London 36%

03

South East 49%

01

Scotland 54%

02

East Midlands 50%

03

South East 49%

04

East of England 48%

05

South West 39%

06

North West 39%

07

North East 38%

08

Northern Ireland 38%

09

Greater London 36%

10

Wales 33%

11

West Midlands 32%

12

Yorkshire & The Humber 29%

Ultimately, however, the self-employed are persevering through the pressure and our study affirms that the benefits outweigh the drawbacks - 62% of respondents reported that they had never considered quitting their business because of stress, and 64% had never considered quitting due to exhaustion.

When rest isn't always possible if you're sick

For many people who choose to go self-employed, taking a break is not simply inconvenient; it feels impossible. The pressure to keep projects moving and clients satisfied creates a culture where being indispensable comes before being fit and well. This leads to a self-employed workforce that is, in many cases, pushing through physical strain with little to no room for rest and recovery.

Unsurprisingly, sleep is one of the first things to suffer. A concerning 44% sleep less than the recommended seven to nine hours on work nights, potentially suggesting that long evenings, early starts, and overflowing task lists have become part of the normal working routine. Even illness doesn't provide a respite either; nearly a third rarely take sick days, and one in ten admitted that they never take them at all. Over half of respondents (57%) admitted working through illness due to the fear of losing clients or income, highlighting how the fear of financial insecurity can override basic health needs.

These issues extend beyond the occasional day of pushing through symptoms to meet a deadline or to keep the project going. 44% of respondents admitted to skipping medical appointments or essential self-care, as they're too busy with work. This data paints a picture of people who felt they couldn't afford to slow down, even when their bodies needed it.

Taking leave and the struggle to switch off

The freedom to take a break when you want to, be it during school holidays, or simply whenever you feel like it, is often seen as one of the biggest perks of being your own boss. Our research revealed a mix of positive and negative experiences with taking time off.

One in five respondents advised the last time they took a week off from running their business was between 1-3 months ago, suggesting that time away from work was a priority. Additionally, 43% of respondents advised they were always or often able to disconnect from work when on holiday.

Yet, the reality is far more complicated. Small business owners who strive to find control over their schedule don't always get the desired result due to circumstances outside of their control. Instead, many have to navigate a cycle of high client expectations, financial worry, and internal pressure that makes genuine downtime difficult to achieve.

The lack of time taken off in the self-employed sector is alarming. One in six respondents haven't taken a full week off in over a year, whilst a concerning 15% of women advised that they've never taken a full week off from their business. This level of sustained availability leaves little room for recovery and increases the risk of long-term fatigue, which can impact the overall health of you and your business. The data suggests essential downtime is also being compromised. One in ten admitted to rarely taking a lunch break, suggesting that many are working through the day without meaningful pauses. In these cases, personal time isn't carved out; it's ignored entirely. 

The clearest example of this is holidays and taking annual leave. A staggering 41% have cancelled breaks or cut them short because work has got in the way, proving that even planned time off is fragile and not always guaranteed. Another element is the associated financial strain, as 43% of respondents revealed that they can't afford the time off.

The emotional cost of isolation

Working alone often has its perks - such as not having to deal with office politics or being micro-managed - and 29% of respondents advised that they rarely or never felt lonely while running their business.

However, it comes with an emotional trade-off for some self-employed workers. Leaving traditional workplaces means leaving the built-in social structure that comes with colleagues, shared routines, and everyday interactions. What replaces it is often long stretches of working alone, not having anyone to bounce ideas off, and being responsible for calling the shots.

Our expert says

"Traditional workplaces offer daily interpersonal contact in the form of regular meetings, team social events and just general chit-chat at the kettle or watercooler. Even remote working offers regular calls and instant messaging among colleagues. Self-employment, however, removes many of these built in social structures, found in 'traditional' workplaces.

"When you work for yourself, the lack of contact opportunities removes the chance for emotional validation, informal problem-solving, and shared experience. The impact of this is that normal business setbacks can feel more personal and a heavier burden, the absence of colleagues makes it harder to regulate stress, vent, or find solutions through social connection."

 Dr Katie Barge, Chartered Psychologist

Loneliness is a recurring theme across the self-employed community. Over a quarter of respondents (28%) said they often felt lonely while running their business, with one in ten describing that feeling as constant. As a knock-on effect, this can have a negative impact not only on productivity, but also on your mental and physical health. Dr Barge adds, Persistent loneliness is linked with an increase in anxiety, low mood, reduced motivation, and cognitive fatigue, all of which can have a knock-on effect on productivity, confidence and decision-making, all of which can make everyday challenges feel disproportionately difficult to deal with.

The absence of a peer group appears to make matters worse, as 36% of respondents said they don't have a network or community of other business owners they can turn to for support. As a result, they're essentially navigating any challenge or setback they experience on their own. Dr Barge states, A support network within a work setting acts as a buffer against stress. Without one, individuals have limited outlets for discussing their concerns or gaining different perspectives on matters. The absence of these outlets increases the perceived pressure that the self-employed experience, and it heightens the sense of bearing the full weight of everything alone.

The impact this can have over time is that it can cause a shift from practical isolation to emotional disconnection, something which can filter into other areas of life and not just work. Isolation, when experienced for a prolonged period, also reduces emotional resilience, meaning any challenges feel heavier and recovery takes longer, accelerating the path to burnout.

So, while independence may be the goal, without proper support and connection, it can quickly become a form of isolation that undermines wellbeing and makes the day-to-day realities of self-employment harder to manage. 

How the self-employed can feel less isolated

Dr Katie Barge lists some practical steps self-employed individuals can take to reduce loneliness in their day-to-day working lives.

Tip #1

Check in with other like-minded people

If you have a network of peers, mentors, or fellow business owners, schedule regular check-ins, either virtually or in person to share challenges and maintain connection.

Tip #2

Change where you work to be with people

If you work in isolation at home, make a habit of changing the scenery and seeking out places to work where you are around people. Use co-working spaces or shared offices a few times a week to introduce natural social interaction into the work routine or if this isn't viable, even an hour or so working from a coffee shop can help improve feelings of loneliness.

Tip #3

Set intentional social appointments into the diary

This could be coffee with a friend, a lunchtime walk with another freelancer, or virtual meetups.

Tip #4

Start networking

If you don't already have a support network in place of fellow self-employed individuals or business owners, then start attending networking breakfasts, workshops, or local business events to help expand your support circle in a business capacity. Choose networking events tailored to your interests and style (e.g., 'netwalks' in nature with fellow business owners).

Tip #5

Join some groups

Look into joining relevant professional associations, industry groups, or online communities to help create a sense of belonging and give you access to ongoing dialogue and potential meetings.

The financial strain behind the stress

When you're in full-time employment, you have the comfort of financial security. However, that's not the case for the self-employed, and as a result, financial insecurity contributes heavily to the emotional strain many business owners face. The pressure isn't limited to long hours or demanding clients; it also stems from the unpredictability of income and the feeling that stability only comes at the cost of skipping sick days or staying constantly available.

It's not a surprise that a third of respondents said they didn't feel financially secure, which creates a constant undercurrent of worry. This uncertainty shapes how people plan for their futures, often replacing ambition with caution. In fact, 35% of respondents advised that they didn't have any plans to expand their business in the next year and, similarly, 34% have no plans to scale at all, suggesting that many feel unable to take calculated risks or invest in growth.

It's not all doom and gloom: why business owners keep going

Despite the many pressures and the clear signs of stress, most self-employed workers remain deeply committed to the path they've chosen. While the challenges are real, so are the rewards. For many, the autonomy and flexibility that drew them to start their own business still offers a sense of purpose that outweighs the day-to-day difficulties.

Having ultimate control over work, decisions, and clients continues to hold significant weight as 75% of respondents stated that they enjoyed being their own boss. Even when the workload is demanding, having that control continues to outweigh the drawbacks for most. So much so, seven in ten reported that self-employment is more rewarding than traditional employment. Emotional payoff and personal satisfaction could be key factors to why people stay the course of working for themselves.

Despite the long hours and feelings of isolation, over half of respondents (58%) said their mental health is better now compared to when they were employed, and 55% of respondents believed they maintained a healthy and sustainable work-life balance. The data suggests the shift away from rigid workplaces, painful commutes, and corporate pressures provided a sense of relief, even when unexpected stresses arise. So, while setting boundaries may be a struggle, many felt they have more influence over their time and routines than they did in traditional full-time employment - and were ultimately happier.  

Summary

Self-employment offers levels of freedom, but it can come with a personal cost. Long, hours, disrupted rest, financial uncertainty, and emotional strain can be part of the everyday reality for many small business owners.

However, despite the challenges, the self-employed workforce are deeply committed to the independence and fulfilment that led them to being their own boss.

About Markel Direct

Markel Direct are a specialist insurer of the self-employed and small businesses, offering self-employed insurance that protects you business against the unexpected. Our team help freelancers, contractors and the self-employed find the right small business insurance - from helping understand what public liability insurance is to how PI insurance works - reducing the potential risks business owners face, and allowing them to focus on the work that they enjoy. 

Meet the Experts

Dr Katie Barge

Dr Katie Barge is a Chartered Psychologist, with The British Psychological Society, and founder of The Nurture System®, a pioneering framework supporting the well-being of children and families. With over 20 years of clinical experience, Katie blends psychology, neuroscience, and nervous system regulation with a compassionate approach helping families move from overwhelm to connection.

You can find her on Instagram: @drkatiebarge

Lou Quenzer

Lou Quenzer is a certified professional coach and founder of Comma & Thread, which creates space for reflection, growth, and connection through her coaching, facilitation, and meaningful conversations. Her work is rooted in curiosity and care. Helping individuals and teams pause, think differently, and uncover new possibilities. Whether in one-to-one coaching or group settings, she guides people toward clarity, confidence, and meaningful change.

You can find her on LinkedIn

Methodology

The survey was conducted using Censuswide between 24.10.2025 - 28.10.2025, which included 1,000 UK based business owners and sole traders.