New York, NY, Sept. 12, 2017 (GLOBE NEWSWIRE) -- A study released today by Hiscox, the international specialist insurer, reveals a confident and promising growth trend among US small businesses, with 72 percent of respondents reporting increased top-line revenue in the past year – the highest amount of any country surveyed. As both investment spending and export activities surge, profits are also on the rise, with 31 percent of US respondents reporting growth in the double-digits.
Now in its ninth year, The Hiscox DNA of an Entrepreneur report is a global study that surveyed more than 1,000 small and medium-sized US business owners about the financial pressures, stresses, opportunities and challenges they currently face.
“This year’s report reveals solid revenue growth among US small businesses and an optimistic outlook for the future,” said Ben Walter, CEO of Hiscox USA. “Millennials are starting businesses and thriving, and there’s a dynamic core of serial entrepreneurs, engaged in more than one enterprise, who are driving innovation. The courage, grit, and entrepreneurial spirit of small business owners continues to be a key driver of economic growth and prosperity.”
Highlights from this year’s report include:
Millennials Hitting Their Stride
This year’s findings show younger entrepreneurs are finding success and confidence as business owners. In fact, 56 percent of respondents under age 30 said their personal financial situation is better now than it was a year ago; 59 percent of respondents ages 30-39 also agreed with this statement. These age groups are also the most optimistic about the future – 73 percent of respondents under age 30 and 86 percent of their counterparts ages 30-39 shared positive sentiments about the future of their business over the next 12 months.
Who Feels Better Off? Depends on Your Gender and Age
Asked about their personal financial situation, more than half of US men running small businesses (51%) say they feel better off than a year ago. The figure for women is just 40 percent. There is also a pronounced age bias in the results. Nearly three out of five (58%) of those under 40 feel better off. At the over-50 level, the figure falls to 35 percent.
Attitudes Toward Government Improving
US small business owners are starting to change their attitude when it comes to government. In this year’s report, 46 percent of respondents said government policies were supportive of entrepreneurs, an increase from 34 percent in 2016. Interestingly, there was also an increase in the number of respondents saying political instability is having an impact on their business (31% to 36%).
Serial Entrepreneurs Driving Innovation
Despite already juggling the many facets of running one business, 26 percent of US small business owners currently operate more than one small business. They are a dynamic group, as 36 percent of these entrepreneurs are planning to develop a new product in the year ahead.
Overdependence on One Customer is a Concern
For the first time, we asked firms to tell us what proportion of their revenue was accounted for by their leading customer. Seventeen percent of small businesses are dependent on their largest customer for half or more of their revenue. The average figure for US firms is approximately one-quarter (27%) of their revenue. This a vulnerability many small businesses live with every day.
Embracing Non-Traditional Sources of Financing
Small business owners in the US are actively embracing non-traditional sources of financing, finding alternatives to bank financing. For example:
- 23 percent have borrowed funds using a credit card;
- 14 percent have turned to family and friends;
- 11 percent have brought in equity investors;
- 10 percent have used crowdsourcing; and
- 9 percent have raised money by remortgaging their house.
Cyber-attacks Cause Serious Loss
Technology has also introduced new challenges for small businesses, with 16 percent of respondents reporting that they have suffered a cyber-attack. Of those respondents, 61 percent cited the attack resulted in a serious loss to the company. Despite the damage a cyber-attack can do to a small business, only 10 percent of US small businesses reported having insurance that covers cyber risks, such as cyber-attacks or data breaches/loss.
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Related Materials
A full copy of The Hiscox DNA of an Entrepreneur Report can be accessed at http://www.hiscox.com/DNA-of-an-Entrepreneur-Report-2017.pdf.
Sample and Methodology
The Hiscox DNA of an Entrepreneur Report examines the attitudes and behaviors of small business owners annually. The sample for this study was provided by Research Now using their proprietary online panels. In total, 4,039 business owners, founders or senior executives within companies with up to 50 employees were contacted (1,000+ from the UK and the US and 500+ each from France, Germany, the Netherlands and Spain). Respondents completed an online survey between May 10th and June 6th, 2017.
About Hiscox
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 2016 helped generate gross premiums written of £2,402.6 million and a record profit before tax of £354.5 million.
The Hiscox Group employs over 2,300 people in 13 countries, and has customers worldwide. Through the retail businesses in the UK, Europe 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 and ILS.
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.
Hiscox is the first insurance company in the US to offer insurance for small businesses direct, online, and in real-time. We provide professional liability, general liability and business owner's insurance, underwritten by Chicago-based Hiscox Insurance Company Inc., which is rated 'A' (Excellent) by A.M. Best Company This information is neither intended nor should be construed to be a solicitation for the purchase of insurance by any US person or entity.
For further information, visit www.hiscoxgroup.com.
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