Optimism among SMEs highest in U.S.: Zurich survey

Competition and a lack of consumer demand are top concerns among surveyed executives of small and medium-sized enterprises (SMEs) in the United States, despite the group being relatively optimistic about future business opportunities, Zurich Insurance Group reports.

Released Wednesday, results of Zurich’s Third Annual Global SME Survey shows that SMEs south of the border – included in the survey for the first time – are among the most optimistic about future business opportunities compared to the rest of the world. The survey – the sample structure of which included 200 interviews per country, with interviews done over the phone – asked CEOs, CFOs and COOs of businesses with 0 to 250 full-time employees in 15 countries about the biggest opportunities and risks facing their businesses.

“We’re seeing a definitive level of optimism from American business leaders who are embracing innovation and new frontiers, yet remain cautious in a changing technology landscape,” reports Craig Fundum, president of commercial markets at Zurich Insurance. “These deep insights into what’s keeping U.S. small and medium-sized businesses up at night are invaluable for Zurich and the insurance industry, and help us to better protect them from potential risks,” Fundum adds.

Asked to respond to the comment – I don’t foresee any opportunities for my business at present – the outlook of U.S. SMEs was most optimistic of all countries surveyed. Just 5.5% of U.S. respondents answered in the affirmative, lower than for any other region taking part in the poll.

Among the opportunities, cost and expense reduction was ranked highest by U.S. SMEs at 39.5%; new customer segments, 28%; new sales channels, 25%; and expansion to foreign markets, 16%. [Click image below to enlarge]

While the U.S. SME outlook was most optimistic, clearly, risks were still identified. Topping that list, Zurich reports, was high competition, cited by 35% of U.S. respondents, while a lack of consumer demand, cited by 30.5%, was on par with the rest of the world.

Of the 14 potential business risks surveyed, the U.S. ranked technological vulnerabilities at 15% and cyber crime at 13%, highest of all the regions. [Click image below to enlarge]

“Given that U.S. SMEs view new sales channels, such as online trading, as one of the key opportunities for growth, it stands to reason that they would weigh tech and cyber-related concerns more heavily than other regions,” Fundum reasoned. However, comparing by region, Asia-Pacific rated natural catastrophes and unpredictable weather as a key business risk and Latin America pointed to fire as a top concern.