Small & Mid-Sized Businesses — Optimistic about the Future

Nationwide just completed a survey of small and mid-sized businesses, and the thoughts of owners about the U.S. economy and their business and personal finances. The results are surprising but most feel somewhat optimistic about what the future holds for their individual firms.

When looking at small businesses, Nationwide's senior vice president and head of middle market commercial lines, Kristina Talkowski said 60% rate the economy as poor or fair.

With mid-sized companies that figure is 51%.

When it comes to thinking about their own businesses, 51% of the small business owners rate their businesses as doing good or excellent. The mid-sized business owners had a more positive outlook with 73% giving good or excellent as their rating.

"Business owners are more optimistic the closer you get to their specific region, industry or business," Talkowski said. "This optimism ultimately aligns with economic indicators showing a resilient economy, but also reflects continued challenges with high interest rates, material, and labor costs.”

However positive the attitude, Talkowski said these business owners are also realistic about the challenges facing them in the future.

“They're resigned to these challenges and proactively taking steps to improve their operational strengths and resiliency,” she added. “I think this preparation has contributed to owners' optimistic views of their own business conditions, as most feel ready to weather a major disruption in the future or even expand their operations.”

Talkowski said both small and mid-sized businesses are confronted with some difficult challenges. They include streamlining costs and other expenses and worker benefits that attract, and keep, employees.

"Health insurance and possibly voluntary benefits like pet insurance certainly play a role in attracting and retaining talent," Talkowski said. "As it relates to property and casualty insurance, business owners who report increasing wages for their workers need to be cognizant of the impacts to their workers' compensation premiums, which will also rise as pay increases.”

As they face these challenges, many business owners are looking to cut costs “with many looking at their insurance as a place to save, while agents and carriers can help ensure business owners don't sacrifice long-term protections for short-term savings,” she said.

• 34% of small companies say their employees want better compensation
• 39% of mid-sized companies say the same
• 25% of small businesses say their employees want better benefits
• 40% of mid-sized businesses note their employees want better benefits

But when it comes to insurance, in the past six months:

• 83% of small businesses renewed their commercial insurance policies online or with an agent
• 77% of mid-sized businesses did the same

However, Talkowski said over a third of the mid-sized business owners cut a policy out completely or lowered coverage limits.

Source link: PropertyCasualty360.com — https://bit.ly/4f5VGd9