Nearly one in three small business owners believe that government regulation is impeding their success and growth, according to new research.
The Bermuda-based international specialist insurer Hiscox discloses this finding in an online survey conducted by Harris Poll. The survey polled 1,023 U.S. small business owners in February and March.
The research finds that 13 percent of small businesses suffered a lawsuit with negative consequences. However, 29 percent of small businesses have no insurance protection.
Despite the struggles entrepreneurs face, the study shows, 93 percent consider confidence a key component in overcoming obstacles and succeeding. Small business owners are most likely to cite government regulation that is unfavorable to small businesses as a top obstacle in the success or growth of their business (31 percent). This is followed by:
- A lack of available funding or support – 23 percent;
- Having trouble finding the right new employees – 12 percent; and
- Being affected by natural disasters such as hurricanes or floods – 8 percent.
Only 4 percent of small business owners are concerned about data or security breaches exposing data or impacting sales. More than one in 10 (13 percent) small business owners has been sued by an employee, vendor or customer. Of those, 47 percent admit the lawsuit negatively impacted their business financially (29 percent), resulted in the loss of customers (13 percent) or negatively affected the business’s reputation (12 percent).
Ninety-three percent of small business owners cite confidence as an extremely or very important factor in their success. Despite 86 percent of small business owners considering business insurance at least somewhat important in protecting them from unforeseen issues, such as lawsuits, as they run their business, 29 percent report their company is not currently covered by any type of business insurance.
More than six in 10 small business owners (62 percent) wish it were easier to shop for and buy small business insurance. Notable factors making a small business owner at least somewhat more confident in an insurer include providing policies tailored to their company’s specific risks so they can avoid paying for unneeded coverage (95 percent) and specializing in insuring businesses in their industry (93 percent).