Over the past few years, fewer small business owners are focused
on growing their business, yet more of them are feeling successful
about how their business is operating and say they are optimistic
about the economy strengthening this year, according to The
Hartford’s 2015 Small Business Success Study.
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According to the fifth annual study, only 33 percent of small
business owners say their primary goal is to grow their business
significantly, which means a large increase in sales, revenue and
staff. This is down from 41 percent in 2012. Fifty-five percent of
owners say they are looking to maintain their business at its
current size, which has been largely consistent over the past few
years.
Even though more than half of owners have a maintenance mindset,
73 percent feel successful about how their business is operating
now, up from 69 percent in 2011. And, the number of small business
owners who are optimistic that the national economy will improve
this year has increased from 33 percent in 2012 to 52 percent in
2015.
“It is encouraging to see better overall sentiment among small
business owners, however, the decline in owners focused on growth
is something all of us need to pay attention to,” said The
Hartford's CEO Christopher J. Swift. “There is no better place to
be an entrepreneur than in the U.S., so it is imperative that we
work to create an environment that better fosters small business
formation, success and growth.”
Swift added, “At The Hartford, we are actively engaged in
helping small businesses grow and succeed. Through our community
partnership efforts, we provide education, resources and microloans
to small businesses, as well as an employee-led program to
patronize and support local businesses, which we call Hart
Mobs.”
Risk Taking Remains ConservativeDespite their feelings of
success and optimism, the majority of small business owners (72
percent) continue to say that the number of risks they take stayed
the same over the past six months. Only about one-fifth of business
owners (17 percent) say the risks they are taking have increased,
similar to levels in previous years.
Most owners (79 percent) consider themselves conservative with
their approach to risk taking, which is fairly consistent with the
results from the past three years. Although small business owners
continue to be conservative with their risk taking, there has been
a steady decline in owners identifying macroeconomic factors as a
risk to their business.
When showed a list of risks ranging from taxes to slow economic
growth, small business owners uniformly felt that these represented
less of a risk to their business compared to three years ago.
Major Risks to
Their Business 2015
2012 Slow economic growth 48 percent
67 percent Healthcare costs 39 percent
53 percent Taxes 37 percent 59
percent
Uncertainty about federalregulations
31 percent 56 percent
Characteristics of Highly Successful Business OwnersBased
on an analysis of data over the past few years, The Hartford’s
study found that owners who take more risks and feel optimistic
about the national economy tend to be more inclined to say their
business is extremely or very successful. In addition, the highly
successful business owners are not as conservative as those who
feel slightly or not at all successful.
The analysis also found that owners who feel their business is
operating highly successfully are relying on better qualified
talent, better guidance from other professionals, and even bank
loans, whereas owners who feel less successful seem to be taking on
the load and stress of running a small business more on their
own.
In the 2015 study, one-quarter (27 percent) of owners who feel
extremely/very successful about how their business is operating
right now rate their overall level of risk as “risky” rather than
“conservative,” compared to just 14 percent of those who feel they
are slightly/not at all successful.
Those who feel their business is operating less successfully and
have not hired or not hired as much as they would have liked this
past year are more likely to say this is because they are taking on
additional responsibilities themselves compared to those who feel
highly successful (38 percent vs. 21 percent).
Highly successful owners who have not hired/not hired as much as
they would have liked in the past year are less likely to say the
reason for not hiring is that their business is not growing,
compared to those who feel less successful and have not hired (20
percent vs. 59 percent).
Upgrading Payment Technology – Chip Embedded Credit/Debit
CardsThis year’s study asked small business owners about
current issues that might impact their business. On the topic of
upgrading their payment technology to chip embedded credit/debit
cards, half (50 percent) of all small business owners are unaware
of the Oct. 1 deadline when some credit card issuers may shift the
liability for certain fraudulent charges to businesses that do not
accept chip-embedded cards. Thirty-three percent of owners are
aware of the change and 12 percent are not sure.
Eighty-six percent of small business owners surveyed said they
do not currently accept chip embedded credit/debit cards, also
known as EMV technology. For those who have not upgraded their
systems, the challenges they face in adopting the new technology
vary:
Challenges to Upgrading Payment
Technology 2015 Customers haven’t asked
30 percent
Don’t know enough about this product to
make adecision
21 percent It is not mandatory yet 20
percent Not clear on the benefits to your business 19
percent New machine is too expensive or complex 18
percent
Among those small businesses that did take the leap forward to
accept chip embedded credit/debit cards, the largest number of
business owners (43 percent) did so because they felt it was the
“future of payment.” Other reasons for adopting the technology
include:
Reason for Adoption
2015
Wanted to avoid assuming liability for any
fraudulentcharges
24 percent
A payment technology company offered a
goodprice
23 percent
It protects customers from financial
informationbeing stolen or lost
16 percent Customers asked about it 15
percent
Small Business Owners Want It “My Way”When asked which
theme song would be their small business anthem, “My Way” by Frank
Sinatra, representing someone who is determined and hardworking,
came out on top with 35 percent. Twenty-one percent of owners chose
“Don’t Stop Believing” by Journey because they are hopeful and
optimistic about achieving their goals.
The top three small business anthems selected were:
Which Song Would Be Your
SmallBusiness Anthem?
2015
“My Way” by Frank Sinatra, because I
amdetermined and hard-working
35 percent
“Don’t Stop Believing” by Journey,because
I am hopeful and optimistic ofachieving my goals
21 percent
“We are the Champions” by Queen,because I
have persevered and beensuccessful
14 percent
Although “My Way” came out on top for all small business owners,
those who feel extremely or very successful are more likely to be
singing ‘We are the Champions” by Queen as their business anthem
(21 percent) compared to owners who feel slightly or not at all
successful (9 percent).
SBSS MethodologyBraun Research conducted a telephone
survey among small business owners across the United States on
behalf of The Hartford. A total of 2,003 interviews were completed
with small business owners of for-profit businesses with fewer than
100 full-time employees who have been in business for at least one
year. The study included a nationally representative sample of
businesses in the United States. One owner, co-owner, principle
owner or sole owner per business was interviewed. The interviews
were conducted between July 7-16, 2015. The margin of error is ±
2.1 percentage points at the 95 percent confidence level.
For more information on these survey results, visit
www.thehartford.com/successstudy.
For more news about The Hartford, visit:
http://newsroom.thehartford.com/.
About The HartfordWith more than 200 years of expertise,
The Hartford (NYSE:HIG) is a leader in property and casualty
insurance, group benefits and mutual funds. The company is widely
recognized for its service excellence, sustainability practices,
trust and integrity. More information on the company and its
financial performance is available at www.thehartford.com. Join us
on Facebook at www.facebook.com/TheHartford. Follow us on Twitter
at www.twitter.com/TheHartford.
HIG-C
Some of the statements in this release may be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. We caution investors that these
forward-looking statements are not guarantees of future
performance, and actual results may differ materially. Investors
should consider the important risks and uncertainties that may
cause actual results to differ. These important risks and
uncertainties include those discussed in our 2014 Annual Report on
Form 10-K, subsequent Quarterly Reports on Forms 10-Q, and the
other filings we make with the Securities and Exchange Commission.
We assume no obligation to update this release, which speaks as of
the date issued.
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version on businesswire.com: http://www.businesswire.com/news/home/20150929005626/en/
The HartfordDebora Raymond,
860-547-4611debora.raymond@thehartford.comorMichelle Symington,
860-547-5385michelle.symington@thehartford.com
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