What is the true cost of scaling from a small to mid-sized business?

Scaling a business comes with significant financial and personal pressure that many founders underestimate. Shawbrook research shows that seven in ten founders underestimated the emotional and financial demands of scaling, while 67% used personal savings or remortgaged to fund growth.

Although many businesses succeed commercially, the journey to mid-size exposes gaps in financial support and founder preparedness.

To explore the realities of scaling in more detail: Read the full Shawbrook M Agenda Report 

Why do founders underestimate the cost of scaling?

Many founders enter the scale-up phase without fully anticipating the operational, financial, and emotional demands.

Key challenges include:

• Rapid increases in operational complexity
• Greater financial exposure and risk
• Increased leadership pressure

As a result:

• 69% say financial risks were higher than expected
• 70% say the overall demands of scaling were underestimated

What financial pressures do scaling businesses face?

Scaling often requires significant upfront investment, which many founders fund personally.

Shawbrook’s research shows:

• 67% used personal savings or remortgaged to fund growth
• Many businesses take on higher financial risk before returns are realised

While this reflects strong confidence, it also highlights a gap in accessible, growth-stage funding.

What is the emotional impact of scaling?

Beyond financial pressure, scaling can have a significant personal impact on founders.

Common experiences include:

• 28% report feelings of isolation during growth
• 28% experience increased higher stress levels as operational demands rise

This shows that scaling is not just a commercial challenge, but a leadership and resilience challenge.

Does scaling ultimately pay off?

Despite the pressures, many businesses do achieve strong commercial outcomes.

• 65% say revenue growth eventually outpaced rising costs

This suggests that while the journey is demanding, successful scaling can deliver meaningful returns.

What support do founders need to scale sustainably?

Founders highlight several types of support that would make scaling more manageable.

These include:

• Tailored finance or funding (30%)
• Peer networks and support groups (30%)
• Mentorship or external advisers (29%)
• Mental health and resilience resources (28%)

This reinforces the need for both financial and non-financial support during growth.

What is holding scaling businesses back?

A key barrier remains access to finance that matches the scale-up stage.

• 28% say they struggle to secure funding aligned to their growth stage

This mirrors a broader trend across the mid-market, where businesses outgrow early-stage support but do not yet qualify for corporate solutions.

To understand the full scale-up journey, including financial challenges, founder pressures, and growth opportunities: Read the full Shawbrook M Agenda Report

^{Methodology
Research was conducted by Censuswide on behalf of Shawbrook between 15–27 October 2025. The survey included 1,000 funding decision-makers at UK mid-sized businesses, defined as organisations with 50–249 employees and annual turnover of £5M–£100M. The sample included 250 property developers.}

^{This research underpins the findings in Shawbrook’s M Agenda Report.}