ACT Report Reveals Creative Small Businesses Show Resilience Amid Rising Costs and Evolving Risks

The 2026 Small Business Creatives Outlook Report from ACT Insurance reveals a creative economy demonstrating resilience with steady consumer demand and continued growth through in-person events, while rising operational costs and evolving risk factors present ongoing challenges for artists, makers, and creative entrepreneurs. The report combines survey data from ACT-insured businesses and U.S. consumers with proprietary claims analysis to provide a comprehensive view of the economic landscape facing creative small businesses in the coming year.

Consumer demand for handmade goods remains consistent according to the findings, with nearly two-thirds of shoppers maintaining their purchasing rates from previous years and 30% reporting increased spending with independent creators. In-person events such as markets, fairs, and festivals continue to serve as primary revenue drivers, with 71% of consumers citing the ability to physically interact with products as a key reason for attending these gatherings. While event participation remains crucial, many creative businesses are adopting hybrid approaches that combine physical presence with expanded online channels to reach broader audiences.

Despite positive demand indicators, operational pressures persist for creative entrepreneurs. Rising costs represent the top concern identified in the report, alongside challenges related to event access, time constraints, and marketing effectiveness. These economic pressures have led many business owners to become more selective about growth investments and operational expansions. Daryle Stafford, CEO of Veracity Insurance, ACT's parent company, noted that "artists, makers and vendors are finding ways to adapt, expand their reach and build sustainable businesses" while becoming "more strategic about how it operates."

The report's risk analysis reveals important trends for creative business owners. While overall claim frequency declined year over year, total claim costs increased significantly. Weather-related events accounted for nearly half of all reported incidents, making them the most common type of claim affecting creative businesses. Fire-related losses, though less frequent, carried substantially higher financial impacts when they occurred. These findings underscore the importance of comprehensive risk management alongside business growth strategies for creative entrepreneurs operating in increasingly complex environments.

The complete analysis is available in the 2026 Small Business Creatives Outlook Report, which provides detailed data and insights for creative business owners planning their 2026 operations. The report's combination of consumer behavior data, business performance metrics, and risk analysis offers a multidimensional view of the opportunities and challenges facing the creative economy. As Stafford emphasized, "with the right protection and insights" creative entrepreneurs "are well positioned to continue growing their businesses and contributing to a vibrant creative economy" despite the evolving landscape of operational challenges and market dynamics.