Objective: To determine whether financial stress and fear of COVID-19 are predictors of psychological distress in small and medium Peruvian entrepreneurs. Material and methods: A cross-sectional, predictive study in which 305 Peruvian entrepreneurs from sectors such as education, transportation, infrastructure, commerce, food, automotive and tourism voluntarily participated. Data were collected through a scale of financial stress, a scale of fear of COVID-19 and a scale of psychological distress. Results: The results of the multiple regression analysis show an adequate model fit (F-test=168,842, p<0,001), where financial stress (β=0,48, p<0,01) and fear of COVID-19 (β=0,31, p<0,01), are variables that significantly predict psychological distress (adjusted R2=0,52). Conclusion: Financial stress and fear by COVID-19 are predictors of psychological distress in small and medium Peruvian entrepreneurs.