ACT Insurance, a leading provider of insurance solutions for artists, crafters, tradesmen and other creative small businesses, today released its 2026 Small Business Creatives Outlook Report, offering a data-driven look at the economic, consumer and risk trends shaping the year ahead. The report combines survey insights from ACT-insured businesses and U.S. consumers along with proprietary claims data to provide a snapshot of how creative entrepreneurs are performing, where they see growth opportunities, and the challenges influencing their decisions.
Findings point to a creative economy that remains steady, with most businesses reporting stable or slightly improved performance in 2025. Consumer demand also remains consistent: nearly two-thirds of shoppers are purchasing handmade goods 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 serve as a primary revenue driver, with 71% of consumers citing the ability to see and feel product quality as a key reason for attending. At the same time, many businesses are expanding into online channels and reflect a more hybrid approach to reaching customers.
Operational pressures persist, however. Rising costs remain the top concern for creative entrepreneurs, alongside challenges related to event access, time constraints, and marketing. This has resulted in many becoming more selective about where and how they invest in growth. “In many ways, the creative small business community continues to demonstrate remarkable resilience,” said Daryle Stafford, CEO of Veracity Insurance, parent company to ACT. “Artists, makers and vendors are finding ways to adapt, expand their reach and build sustainable businesses. What we’re seeing is a community that continues to grow while becoming more strategic about how it operates.”
The report also examines evolving risk trends across the creative economy. Using claims data, it highlights the most common incidents affecting creative businesses along with the types of losses that can carry the greatest financial impact. While overall claim frequency declined year over year, total claim costs increased. Weather-related events remained 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. Together, these insights underscore the importance of pairing growth strategies with strong risk management practices.
“Independent artists and makers are entrepreneurs in every sense of the word,” Stafford added. “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 on the ACT Insurance website. ACT Insurance, founded in 2012, provides specialized coverage for creative small businesses across the United States. Learn more at actinsurance.com.
