Hiscox’s 8th annual DNA of an Entrepreneur Study reveals a strong bullish streak among entrepreneurs. The report, which pulls data from more than 1,000 US entrepreneurs, indicates that small business growth is surging, with 70% reporting a growth in revenue, 68% reporting a growth in profits, and 73% adding new customers. Despite this good news, a notable number of entrepreneurs are clearly dissatisfied with the political landscape. A surprising 31% of entrepreneurs polled said that political instability is having a negative impact on businesses.
Read our experts and check out the 2016 DNA of an Entrepreneur infographic below.
Small Business Want More Government Support
Globally, a large proportion of small business owners are expressing dissatisfaction with government stability. In the United States, with a gridlocked congress and a looming election, perhaps it’s not surprising that nearly a third of entrepreneurs are saying politics are effecting their business. In terms of what small businesses actually want from their government, they’re seeking:
• Simpler accounting rules;
• Stimulation in lending
• Subsidized training and professional development courses; and
• Relaxation of employment laws
Small Business Funding is Still a Struggle
Similar to what we saw last year, bank funding remains a hurdle for many small business owners. In fact, it seems to have become more difficult. As a result, many entrepreneurs are seeking alternative means of funding.
• Bank funding has become more difficult for U.S. small business owners to obtain versus last year (17% vs. 13%).
• 44% of small businesses that were set up within the last four years say they are drawing on outside sources of income to help fund or develop their business. This is especially common amongst those over 40 years of age (54%).
Small Business Owners are Bullish on Hiring, but not on Succession Planning
According to this year’s findings the U.S. is one of the most active recruitment markets, with 23% of business owners looking to hire in the year ahead. In a first for Hiscox, in 2016 our report explored the topic of succession planning. Remarkably, 61% of U.S. small business owners do not have a succession plan in place. Equally surprising is that 65% of those aged 50 and older are amongst those without a succession plan. This seems largely due to the fact that business owners are retiring and plan to close their businesses or sell the businesses outright.
Top 5 Major Uninsured Risks
Entrepreneurs and Small businesses have a number of responsibilities to handle and concerns to think about on a daily basis. Interestingly, While a majority of business owners understand the risks they face, many are taking unnecessary risks by not insuring against events that could pose a real threat to their businesses.
The top five risks U.S. small business owners worry about, but don’t currently insure against include:
• Non-payment by customer (34%);
• Unforeseen events such as a pandemic or economic crisis (24%);
• Being sued by a customer (23%);
• Hacking/cyber crime (21%); and
• Reputational damage (17%).
Previous DNA Reports
Check out our past DNA of an American Entrepreneur reports.
- 2015 DNA of an Entrepreneur
- 2014 DNA of an Entrepreneur
- 2013 DNA of an Entrepreneur
- 2012 DNA of an Entrepreneur