If You're a Small Business, You're Probably Not Taking Cybersecurity as Seriously as You Should

According to the CNBC Surveymonkey Small Business Survey, only 5% of small businesses report cybersecurity as the #1 risk to their business.

While this is not true (facts to follow), many small businesses are still reeling from the pandemic, managing cash flow, and growing return to pre-covid demand. Cybersecurity, and significant investment in it, are just not at the top of the priority list. The pandemic saw countless small businesses go under, with many remaining still holding on for dear life. Unlike large corporations with deeper pockets, small businesses have had to prioritize financial survival over proactive cybersecurity. This recent survey by CNBC tells us this may be a grave mistake for the small business survivors. 

The CNBC survey collects responses from over 2,000 small business owners every quarter to report overall business health and the overall business environment. The most recent quarter’s survey found that only 5% of small business owners named cybersecurity the major risk to their business. So, what is the most significant risk? 

The answer is inflation. Quarter over quarter, 38% (up from 31% quarter prior) of businesses reported inflation is currently the biggest risk to their business. Most recently, Covid and supply chain disruptions topped the list.

Meanwhile, since Russia invaded Ukraine, U.S. officials have warned businesses of all sizes to stay vigilant against increased ransomware attacks. Even still, small businesses are not appropriately heeding this warning in light of their growing fear over the reality of inflation in the U.S. currently. 

Why should small business owners care about cybersecurity? Two key reasons: 

1. Financial ramifications. All small business owners are concerned with their bottom line. While small business owners are currently focused on inflation costs, it is vital to consider the financial risk of ignoring cybersecurity. Cybercriminals are after money, and they’re getting a lot of it in ransomware attacks.
2. Customers care about cybersecurity. According to data, small businesses care about their customers – in many cases even more than big corporations – and customers care about a business’ cybersecurity practices. 
   1. In the SurveyMonkey poll, 55% of Americans reported they would be less likely to do business with brands that are victims of a cyberattack. 
   2. 75% of Americans reported that they expect businesses in the U.S. to experience a significant cyber-attack within the next 12 months.
   3. Consumers generally carry expectations for cybersecurity preparedness, though it varies by industry. 

We get it – if you’re a small business, you’ve likely experienced some level of financial strain over the past two years. One of our goals as a managed service provider is to do our part in saving our clients money. We can achieve this by putting proper cybersecurity protocols in place to protect your business as best as possible from unnecessary cyber attacks. 

PK Tech works with small to medium-sized companies in the Greater Phoenix Area. We would love to help your business avoid the financial and customer ramifications of ignoring cybersecurity. Our team is ready to support your business–get in touch with us here.