Small Business Owners Hit Hard By Sandy Outages, The Hartford Finds
- Lack of connectivity likely impaired owners' ability to reach customers, suppliers
- Approximately two-thirds of impacted owners experienced power outage; those that had to close were shut down for an average of seven days
The survey revealed that 71 percent of impacted small business owners experienced power outage, which likely led to temporary disruptions in business operations. In addition, approximately three-fourths (74 percent) of impacted owners had to close their doors for a period of time, and it took them an average of seven days to reopen. While only 11 percent experienced structural property damage, 52 percent experienced loss of sales or revenue as a result of
"Our research shows that loss of connectivity had a big impact on small business owners, which affected their ability to contact customers and keep their businesses open," said
Despite the notable effects of the storm, approximately nine out of ten owners (87 percent) said that they were equally or better prepared than other small businesses in their area.
The survey, which was fielded nearly three months after the storm struck the
- Customer issues (65 percent), employee issues (47 percent) and supplier issues (44 percent) were challenges for impacted owners during or after the storm;
- One-third (36 percent) of small business owners impacted said that they were impacted significantly;
- More male small business owners (42 percent) reported that they were significantly impacted compared to female small business owners (28 percent);
- In addition, more impacted respondents had to close their businesses for a period of time in
New York (81 percent) and New Jersey (78 percent), compared to Connecticut (64 percent); and
- Impacted small business owners in
New Jersey were more likely to have experienced power outage (82 percent) than those in Connecticut and New York (71 percent and 62 percent respectively).
One out of four impacted small business owners (25 percent) prepared for
Prevailing in the Months Ahead
The survey showed that the consequences of the storm will continue to stretch beyond the immediate impact of a week-long closure. In order to recover from
Based on their experience with
- Review your property insurance coverage (23 percent)
- Invest in a generator (21 percent)
- Create a backup of important records (15 percent)
- Develop a business continuity plan (14 percent)
"It's important for small business owners to talk with their agents about the right insurance for their businesses and make sure they are prepared for weather emergencies," said Sprague. "This can include everything from reviewing your current insurance coverage and addressing new needs to developing a business continuity plan. For business success, it's critical to prepare for the unexpected and protect the business and employees, in order to prevail in the months and years ahead."
Sprague and a panel of experts are speaking about the survey findings to
The panel is comprised of leading small business experts, including Sprague, as well as:
Mark Jaffe, President & CEO, Greater New York Chamber of Commerce Christine Lagorio, Executive Editor, Inc. Gene Marks, Columnist, Author and Small Business Owner Jennifer Walzer, Small Business Owner and CEO of BackUp My Info!
For more materials and information, visit: http://newsroom.thehartford.com/.
The Hartford Small Business Pulse:
With more than 200 years of expertise,
Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2012 Annual Report on Form 10-K and the other filings we make with the
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