How small business owners feel in the year ahead
Follow the Starting a Business as a Young Entrepreneur interview series and don’t miss an interview!
Interview Series Sponsored by Hiscox Small Business Insurance. Hiscox specializes in protecting IT/technology, marketing, consulting, health and beauty, photography and many other professional services businesses, tailoring coverage to the specific risks in your industry.
We had the chance to speak with Hunter Hoffmann, head of US communications for Hiscox. Hiscox is a specialist in small business insurance who works with over 35,000 small businesses across the United States. Recently, Hiscox released the results of their fifth annual DNA of an Entrepreneur survey where they spoke to over 500 small businesses across the US about the economy, their business and their challenges.
The report highlights a few key findings about small business owners today including:
Reduced optimism for the year ahead
Weakened revenue growth over the past year
Fear that the government and its policies will not support their efforts
An increase in stress because of the economy
Only 41% of small business owners understand their insurance options
The main benefit of running a business was the flexibility of work hours
Most of these things don’t seem very promising for current small business owners. However, Hunter pointed out in the interview that this is often the best time to start a business, especially for young entrepreneurs. According to the study, many individuals under the age of 30 were starting businesses simply because they could not find a job. Yet, they were the most optimistic about the year ahead and had the highest growth rate in their businesses over the last year (77%). In no way is a bad job market a positive thing overall but it can spark new businesses and give individuals the needed push to venture out on their own.
Hunter also discusses how important it is for organizations to educate these new business owners and support them when needed. When only 41% of small business owners understand the insurance options they have, there are obvious holes in the information they are being provided with. Insurance is not the only area small business owners are lacking in information but it is where Hiscox is determined to create easy and informational resources for business owners.
You can read the full report here: The DNA of an Entrepreneur Report 2013
Find more information from Hiscox here:
Twitter - @hiscoxsmallbiz
LinkedIn – The Entrepreneur’s Collective
Facebook – www.facebook.com/hiscoxsmallbiz
YouTube – www.youtube.com/hiscoxinsurance
Pinterest – www.pinterest.com/hiscoxusa
- Tell us about the DNA of an Entrepreneur Report and why Hiscox published it.
- The first thing the report points out is small business owners have reduced optimism and weakened growth. Do you think it’s still a good time to start a business?
- The report notes the many benefits of running a small business. Do you think those benefits hold true in tough economic times?
- Starting a business is always risky. However, the report notes that only 41% of business owners understand what insurance is available to them. What do you think are the biggest misunderstandings about small business insurance coverage?
- What can be done to improve small businesses knowledge of insurance options?
- How can universities, governments and companies become more accessible for help and knowledge when it comes to insurance options?
- One obstacle we see when educating small business owners on insurance is many people don’t find it as a fun topic and thus don’t pay as much attention to it as they should. How can the information on insurance be fun and engaging so small business owners stay more engaged and better understand what they need to do?
- If you had to give one piece of advice to small business owners today what would it be?
Listen to the full interview here: