Hiscox Study Finds Small Business Owners are Optimistic about the Economy, but Have Taken Steps to Prepare for a Downturn

NEW YORK, Feb. 11, 2020 /PRNewswire/ -- According to a study released today by Hiscox, a leading small business insurer, over half of small business owners (57%) feel better about the current state of the US economy compared to a year ago. However, despite this confidence, 90% have taken steps to prepare their businesses for an economic downturn. The 2020 Hiscox Small Business Owner Risk Study™ surveyed 1,000 US small business owners to take their pulse regarding current conditions.

Beyond the economy, small business owners are also optimistic and confident about their business's performance in the year ahead. Over half (51%) expect profits to increase in the next 12 months. Ninety-three percent of respondents are optimistic about the year ahead, and this outlook is driven by new customers (60%), steady/improved demand (47%) and new products (30%).

Despite their confidence, small business owners are preparing for volatility and an ebbing tide. When it comes to the internal risks of running their businesses, small business owners are concerned about attracting new clients (39%), maintaining profitability (34%), passing cost increases on to customers (17%) and receiving timely payments from customers (17%). External concerns about government and political issues are also top of mind, including taxes (21%), economic growth (20%) and healthcare policy (12%). While 66% feel their business is prepared for an economic downturn, only one in five feel "very prepared." Respondents are taking steps to prepare that include reducing expenses (43%), setting up an emergency savings fund (38%) and increasing marketing efforts (31%).

"Small business owners are risk-takers, so it should come as no surprise that in a strong economy they are looking to expand and grow the profitability of their businesses," said Kevin Kerridge, Executive Vice President of Small Business Insurance at Hiscox USA. "But small business owners also recognize there are many factors that could alter their plans, so many have taken steps to prepare for a change in conditions while continuing to focus on activities that will drive growth."

Hiscox USA provides a variety of specialty risk solutions, including a broad spectrum of professional errors & omissions, general liability, cyber and data security, media liability, management liability, crime, kidnap & ransom, terrorism and commercial property insurance products.

In the US, Hiscox has offices in New York, NY; Atlanta, GA; Chicago, IL; Dallas, TX; Los Angeles, CA; Phoenix, AZ; Las Vegas, NV; San Francisco, CA and White Plains, NY.

Related Materials:

https://www.hiscox.com/documents/2020-Hiscox-Small-Business-Owner-Risk-Study.pdf

About the Study

The survey was conducted by Wakefield Research among 1,000 US small business owners with less than 50 employees, between November 20 and December 4, 2019, using an email invitation and an online survey. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the results that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

About The Hiscox Group

Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It's a long-standing strategy which in 2018 saw the business deliver a profit before tax of $137.4 million in a challenging year for insurers.

The Hiscox Group employs over 3,300 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS. In the US, Hiscox small business Insurance is underwritten by Hiscox Insurance Company Inc., a Chicago-based insurance company.

Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.

The content provided above is provided for general informational purposes, but is not intended, nor shall it be deemed, to be business, legal or insurance advice for any particular or specific person or entity. 

Media Contacts

Lou Casale
Hiscox USA
+1 646 442 8341
[email protected]

SOURCE Hiscox

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