The ACT Insurance 2026 Small Business Creatives Outlook Report, released today, provides a data-driven analysis of the economic, consumer, and risk trends shaping the creative economy. Based on surveys of ACT-insured businesses and U.S. consumers, along with proprietary claims data, the report indicates that most creative small businesses experienced stable or slightly improved performance in 2025, with consumer demand for handmade goods remaining consistent. Nearly two-thirds of shoppers are purchasing at the same rate as prior years, and 30% report increased spending with independent creators.
In-person events, such as markets, fairs, and festivals, continue to be a primary revenue driver, with 71% of consumers citing the ability to see and feel product quality as a key reason for attending. However, many businesses are expanding into online channels, adopting a hybrid approach to reach customers. Despite these positive trends, operational pressures persist. Rising costs remain the top concern for creative entrepreneurs, along with challenges related to event access, time constraints, and marketing. This has led many to become more selective about where and how they invest in growth.
Daryle Stafford, CEO of Veracity Insurance, parent company to ACT, noted, "In many ways, the creative small business community continues to demonstrate remarkable resilience. Artists, makers and vendors are finding ways to adapt, expand their reach and build sustainable businesses." The report also examines evolving risk trends, using claims data to highlight common incidents and their financial impact. While overall claim frequency declined year over year, total claim costs increased. Weather-related events were the most common type of claim, accounting for nearly half of all reported incidents, while fire-related losses, though less frequent, carried significantly higher costs.
These insights underscore the importance of pairing growth strategies with strong risk management practices. As Stafford added, "Independent artists and makers are entrepreneurs in every sense of the word. With the right protection and insights, they are well positioned to continue growing their businesses and contributing to a vibrant creative economy." The full report is available at 2026 Small Business Creatives Outlook Report. ACT Insurance, founded in 2012, provides specialized coverage for artists, crafters, tradesmen, and other creative small businesses across the United States. More information about ACT can be found at https://www.actinsurance.com/.
