Government regulation is the biggest obstacle impacting their growth and success say one in three, or 31%, small business owners. The second biggest hurdle standing in their way is access to capital and support, according to a new survey of more than 1,000 small business owners released by Hiscox, the global specialist insurer.
So what’s the best armor to face these challenges and succeed as a small business owner? Confidence, according to 93% of small business owners is a key component in overcoming obstacles and succeeding in their business.
“Confidence is a critical element in the DNA of successful small business owners and entrepreneurs,” says Kevin Kerridge, director of Small Business Insurance at Hiscox. “It’s important, however, to have the necessary protection in place to mitigate potential obstacles, which helps small business owners feel more confident to tackle the challenges at hand.”
The study also found that more than one in 10 small businesses suffered a lawsuit by an employee, vendor or customer with negative consequences. However, 29% of small businesses have no insurance protection. Despite an increase in data breaches and hacking, only 4% were concerned about data or security breaches potentially exposing data or impacting sales.
While a vast majority of small business owners (86%) consider business insurance important in protecting them from unseen issues—such as lawsuits—as they run their business, but only 29% are actually covered by any type of business insurance. Many small business owners (62%) would purchase it if coverage were easier to shop for, which includes providing policies tailored to their company’s specific risks so they can avoid paying for unneeded coverage (95%) and specializing in insuring businesses in their industry (93%).
“There is a perception versus reality gap among SBOs when it comes to protecting our businesses,” says Brian Moran, small business advocate, consultant and Hiscox Entrepreneur in Residence. “Roadblocks will inevitably be put in your path to success. Understanding your risks and having the right protection in place means you can confidently spend time focusing on what’s most important – running your business.”