ACT Insurance, a provider of insurance solutions for artists, crafters and other creative small businesses, released its 2026 Small Business Creatives Outlook Report on March 31, 2026. The report combines survey insights from ACT-insured businesses and U.S. consumers along with proprietary claims data to provide a data-driven look at the economic, consumer and risk trends shaping the year ahead.
Findings indicate that the creative economy remains steady. Most businesses reported stable or slightly improved performance in 2025. Consumer demand is consistent, with nearly two-thirds of shoppers purchasing handmade goods at the same rate as prior years, and 30% reporting 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. Many businesses are also expanding into online channels, reflecting 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 led many to become more selective about where and how they invest in growth. Daryle Stafford, CEO of Veracity Insurance, parent company to ACT, stated, “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. 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 and 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. These insights underscore the importance of pairing growth strategies with strong risk management practices.
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 on the ACT Insurance website. ACT Insurance, founded in 2012, provides specialized coverage designed for artists, crafters, tradesmen and other creative small businesses across the United States. Veracity Insurance, the parent company, serves small and mid-sized businesses through exclusive, industry-tailored programs.
