The creative small business sector is showing resilience heading into 2026, with steady consumer demand and continued reliance on in-person events driving revenue, according to the 2026 Small Business Creatives Outlook Report released today by ACT Insurance. The report, based on surveys of ACT-insured businesses and U.S. consumers along with proprietary claims data, offers a data-driven look at the economic, consumer and risk trends shaping the year ahead.
Findings indicate that most creative businesses reported stable or slightly improved performance in 2025. Consumer demand remains 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 hybrid approach to reaching customers.
However, operational pressures persist. 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. “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.”
The report also examines evolving risk trends using claims data. 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. Fire-related losses, though less frequent, carried significantly higher costs. 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.”
ACT Insurance, founded in 2012, provides specialized coverage for artists, crafters, tradesmen and other creative small businesses across the United States. The full report is available at actinsurance.com/2026-outlook-report. More information about ACT Insurance can be found at https://www.actinsurance.com/.
