Small and medium-sized enterprises make up around 90% of all companies from around the world and account for more than 50% of global employment. In the European Union, a whopping 99% of all businesses fall under the umbrella of micro and small enterprises, meaning that they employ forty-nine individuals at the most. Almost 80 million people work for such a company. The figures are similar in the United States, where the Small Business Administration says that small businesses make up 99.9% of all firms. Here, they are defined as having 500 employees or fewer. In Canada, 1.19 million businesses (out of the total of 1.22 million) are small businesses, a percentage of 97.8%. In Asia and Africa, the numbers are also around 95% and 90% respectively. In Australia, 98% of all companies are considered small businesses, having fewer than twenty employees. In South America, 99.5% are SMEs, while in New Zealand the figure is around 97%.
This shows that, while the enterprises themselves are small, they loom quite large within the larger economy. It’s definitely not an exaggeration to say that the global economy stands on the shoulders of SMEs, with the digital revolution propelling them further than ever before and enabling them to reach international marketplaces. However, the creation of larger digital footprints and the increasing reliance on the cyber world have also brought risks for small business owners. Cyberattacks are quite common, as hackers believe businesses lack adequate resources, defenses, and the expertise to protect vulnerable data, making them easier targets. Since the livelihoods of a large number of people depend on these businesses, they are vital for economic growth and drive innovation; it is essential for them to learn how to protect themselves.
Making the right investments
With the number of cyberattacks continually rising, research estimates that more than 30% of small and medium-sized businesses have become the victims of a cyberattack such as ransomware, data breaches, or phishing. This is why it’s important to invest in the tools and measures that can help your business withstand these attacks. The most important thing is to make sure that all your employees receive basic cybersecurity training. In many cases, data breaches occur as a result of human error, such as when someone emails someone’s confidential information to someone else, or clicks on a link that leads to their computer being infected by malware, which later spreads to the entire system.
Using a business password manager should be a must as well, as you need to create long and complex passwords for every single one of the accounts used in your business. Make them as different and as random as possible to avoid them being cracked. Using a tool like this can also help you create stronger passwords, share logins in a secure, encrypted environment, and have complete control over who accesses your accounts. If your software or hardware is old, you need to upgrade them in order to keep up with the market’s requirements. Lastly, don’t ever underestimate hackers. You might believe that your business is too small to be targeted, but the truth is that there’s no such thing as a business that couldn’t be attacked.
Remember that preventing attacks is much better than dealing with a data breach, as these attacks are not just costly but can also cause irreparable damage to your reputation.
Regulatory requirements
The internal aspect is not the only thing that small businesses need to take into account. Regulatory compliance has also become a growing concern for SMEs, especially those operating in fields such as healthcare, tech, finance, and logistics. Changing frameworks and the changes occurring in geopolitics have meant that businesses must increasingly demonstrate robust cybersecurity practices to avoid penalties and fines. Businesses need to be able to report breaches right away and have comprehensive response plans in the event they occur in order to minimize the risks, as well as manage third-party hazards.
Dealing with risk assessments, legal requirements, and having to implement complex cybersecurity policies can be challenging for some SMEs, as many don’t always have adequate resources needed to keep up with these challenges. Finding solutions that are tailored to the needs of each firm, as well as the specific dangers each of them is dealing with, is something that will define the future of small businesses. Given the importance of the sector, about 80% of small and medium-sized businesses report their intention to increase cybersecurity spending, being motivated by the desire to avoid financial loss as much as possible, as well as safeguard the data entrusted to them.
Managed detection and response
Managed Detection and Response, also known as MDR, delivers constant threat monitoring that is active 24/7. Incidents are detected right away with the help of this tool, with the responses being immediate as a result. The best part is that there’s no need to have an in-house security team to achieve this. There are services that can scan your environment at all times, and the moment they detect any form of suspicious activity, they have the means to isolate the threats and conduct complex forensic analysis that will prevent their recurrence.
The entire company can be protected via MDR, creating fewer business disruptions and making everything much more efficient. There’s no one-size-fits-all solution either, as all companies can receive tailored services that take their main networks, as well as the cloud infrastructure and endpoints, into consideration.
The bottom line
While digital environments have helped businesses grow and become more efficient, they have also brought new challenges that owners need to learn how to manage. The landscape and frameworks are changing all the time as well. For instance, many think that the rise of artificial intelligence will increase the need for different cybersecurity strategies, as hackers use AI to make their attacks more sophisticated. The overwhelming majority of small businesses regard cybersecurity as essential for the well-being of their operations, with ransomware, phishing, and managing data on personal devices being the key considerations.
Keeping up with all these aspects is imperative for all SMEs, as they will determine whether they’ll prosper or end up failing.
