Technology functionality and reliability a concern for U.S. small business: Allstate

The functionality and reliability of technology to run the business was a top concern cited by small business owners in the United States recently surveyed on behalf of Allstate Insurance Company.

Carried out by FTI Consulting, Inc. April 15-17, 520 small business owners or operators with 25 or fewer employees took part via an online survey using a sample panel, notes a press release from Allstate. Survey results were issued at the kick-off of National Small Business Week in the U.S., which runs May 12-16.

Technology and equipment were also among concerns cited by respondents when asked about risk.

The survey found that four in 10 cited an interruption due to injury or illness as the biggest risk faced by small businesses. That was followed by concerns over data lost, stolen or compromised, noted by 16%, and having essential equipment break down, reported by 11%.

Overall, 25% of small business claims reported to Allstate are due to damage to the building and/or contents, loss of income and computer or data loss, notes Allstate, a provider for more than 250,000 small business policyholders distributed through 10,000-plus small business insurance agency owners.

Beyond functionality and reliability of technology, rounding out the top five things keeping small business owners up at night are as follows:

• taxes, government regulations and health care reform;
• financing, with decreasing ability to acquire funds year over year;
• customer acquisition and retention; and
• talent management, including recruiting and retaining staff.

“Firms with high-performing talent have a 350% growth variance between firms with low-performing talent, and the issues impacting a multi-generational workforce have given way to challenging engagement tactics for small businesses,” notes the Allstate press release.

“Small-business owners struggle with many of the same issues as big business, but with minimal resources to make ‘the business of doing business’ happen fluidly,” suggests Mike Barton, president of Allstate Business Insurance.

Other key survey findings include the following:

• almost half of small businesses – the number of which has increased about 50% since 1982 – intend to grow in the next year with about one-third of small businesses adding staff;
• 78% of small business owners state their company is performing profitably; and
• small businesses are most concerned with competition from other small businesses in their area, cited by 46%.