Study finds that American entrepreneurs are optimistic towards taking

risks



    NEW YORK, July 23 /EMWNews/ -- Despite a weakened economic

market, a new study from international specialist insurer Hiscox shows that

46% of American small business owners still feel that they can make more as

entrepreneurs than the traditional corporate world. Released today, the

"DNA of an Entrepreneur" survey on entrepreneurship and risk, challenges

conventional wisdom and sheds greater light on the characteristics that

make up a successful entrepreneur, particularly in the current business

climate.



    "Today's landscape is ever changing, entrepreneurs are often exposed to

higher and more complex levels of risk," said Ed Donnelly, Hiscox USA

President. "But it doesn't require a maverick, risk-seeking personality to

be a successful business owner; it needs dedication, perseverance and

ambition."



    In a trans-Atlantic study, which included 200 US-based entrepreneurs,

attitudes to risk often run the gamut. But in all cases, today's small

business owner is adept at managing risk and understands that it is part of

today's global economy.



    Defining the American Dream



    US small business owners have strong views on what defines their

success as entrepreneurs. Nearly half give themselves fixed financial

targets and measure success according to their ability to meet these

targets. Similarly, expansion was seen as another sign of success by 44% of

US entrepreneurs. However, when compared with their counterparts in the UK,

US small business owners place more value on how they are perceived, with

nearly one third (29%) admitting that public and peer validation was a sign

of success.



    Relentless Despite Market Conditions



    The slowed economy makes it a challenging environment for any business.

From entering emerging markets to managing cyber threats, many companies

have become more vulnerable than ever -- especially small and family-owned

companies as the downward economy hits them hardest. Yet more than half of

respondents surveyed said that they decided to take the plunge into

entrepreneurship within the last year, even in the current market

conditions. "This further underscores their attitude towards risk,"

emphasized Donnelly.



    -- Only 1% of small business owners cited that cash flow and the

downward economy as their biggest fears when deciding to start a business.



    -- 33% of entrepreneurs accept that in general, running a business is a

gamble.



    The Land of Opportunity



    Despite market concerns, the study also reveals that the spirit of

entrepreneurialism that defines America is alive and well. When compared

with their counterparts in the UK, US entrepreneurs felt that the education

system encourages the idealism and dreams which many view as essential to

entrepreneurship (61% in the US vs. 21% in the UK). Coupled with this, US

small business owners feel much less restricted by government red tape with

68% saying that government bureaucracy is not a major barrier to setting up

a small business, compared with only 46% in the UK.



    Optimistic Expansion Outlook



    And although a growing number of US corporations are cutting back on

spending and hiring, almost 7 out of 10 entrepreneurs surveyed would

consider expanding or taking on new staff in the current economic climate.



    -- Even with banking woes, 32% of respondents agreed that financial

funding for a new business is easy to find in the US.



    -- Less than one quarter of respondents cited that they would consider

seeking new ways to fund their business in the current business

environment.



    "Overall, their outlook is very optimistic," added Donnelly. "People

are choosing a new path of self-direction and welcoming what lies ahead."



    NOTES TO EDITORS



    Summary of key findings






                                     US      UK    Germany  France  Holland

    IMPACT OF CURRENT ECONOMIC

    ENVIRONMENT ON THE BUSINESS

    I will not avoid expansion or

     employing new staff due to

     the current economic climate    69%     52%     53%      48%     57%

    ATTITUDES TO RISK

    Culturally, we are inclined to

     take risks in this country      78%     44%     33%      34%     54%

    I'm comfortable with taking

     risks                           37%     35%     53%      30%     43%

    Taking risks excites and

     motivates me                    11%     14%     18%      23%     20%

    I wish I could run my own

     business without having to

     take any risks                  15%      7%     14%      13%     14%

    MOTIVATION WHEN FIRST

    SETTING UP IN BUSINESS

    To be my own boss                69%     58%     59%      71%     74%

    To make more money than I

     could working for someone else  46%     34%     35%      27%     17%

    To bring a great business idea

     to life                         36%     21%     19%      26%      8%

    To escape from the traditional

     corporate world                 33%     15%     11%      14%     10%

    BARRIERS TO

    ENTREPRENEURIALISM

    Government bureaucracy           30%     54%     67%      76%     55%

    Unfavourable taxation system     40%     68%     65%      66%     48%

    Difficulty in obtaining

     funding                         58%     64%     81%      72%     55%

    Education system does not

     encourage individual ideas

     and dreams                      35%     61%     80%      66%     50%

    Survey Methodology



    The research was conducted by The Survey Shop using a Dun & Bradstreet

database, between May 27 and June 27, 2008. A total of 1,150 telephone

interviews were conducted in five different countries with the owners of

office-based companies in the professional services sectors, with each

company employing up to 50 employees. 200 business owners were interviewed

in the US, Holland, Germany and France and 350 business owners were

interviewed in the UK. Results are presented as column percentages, rounded

to the nearest whole, and arithmetic percent confidence level.

    About Hiscox



    Hiscox (LSE: HSX.L), headquartered in Bermuda, is a specialist

insurance group listed on the London Stock Exchange. There are three main

underwriting parts of the Group -- Hiscox Global Markets, Hiscox UK and

Europe, and Hiscox International. Hiscox Global Markets underwrites mainly

internationally traded business in the London Market -- generally large or

complex business which needs to be shared with other insurers or needs the

international licences of Lloyd's. Hiscox UK and Hiscox Europe offer a

range of specialist insurance for professionals and business customers, as

well as high net worth individuals. Hiscox International includes offshore

operations in Bermuda and Guernsey and Hiscox USA. Hiscox Insurance Company

Ltd, Hiscox Underwriting Ltd and Hiscox Syndicates Ltd are authorised and

regulated by the Financial Services Authority.



    For further information, visit http://www.hiscox.com.



    About Hiscox in the US



    Hiscox's divisions in the US include Hiscox USA, Hiscox Global Markets

and American Live Stock.



    Hiscox USA, headquartered in Armonk, New York, specializes in providing

cover for small and mid-size US business risks. Hiscox Global Markets in

the US, headquartered in Manhattan, caters to large risks particularly in

the technology, media and telecommunications industries. American Live

Stock, based in Chicago, Illinois, is a leading provider of animal

mortality insurance in the US.







    Hiscox USA and Hiscox Global Markets in the US trade through Hiscox

Inc., a licensed insurance intermediary for admitted and surplus lines

business across the US. Hiscox Inc. underwrites on behalf of, and places

business with, select US domestic admitted carriers and syndicates at

Lloyd's of London.



    Hiscox USA, Hiscox Global Markets in the US and American Live Stock

products can be purchased via US-based brokers. For further information,

visit http://www.hiscoxusa.com.







    For further information please contact:



    Cubitt Jacobs & Prosek Communications, New York



    Caroline Harris, 212 279 3115 x.222, [email protected]



    Kimberlee Bradshaw, 212 279 3115 x.228, [email protected]