Cyberattacks are now small-business owners' worst fear
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Small-business owners are now just as concerned about a cyberattack as they are about a supply chain disruption or another pandemic.
Why it matters: That concern has inspired many small-business owners to start investing in new cybersecurity tools and consultants, according to the U.S. Chamber of Commerce's first-quarter small-business index, shared first with Axios.
The big picture: Small businesses have long been quiet but prime targets for ransomware, business email compromises and phishing attacks.
- And unlike major corporations, many small-business owners have historically lacked the time, money and headcount to properly invest in network defenses.
Driving the news: 60% of small-business owners said in the Chamber's most recent index that they're concerned about cybersecurity threats.
- The index — co-sponsored by MetLife — is based on a survey conducted among 755 small-business owners between Jan. 26 and Feb. 12.
What they're saying: "In 2018, if I had said 'phishing tests,' people would think they'd be going to a Bass Pro Shop," Thomas Sullivan, vice president of small-business policy at the Chamber, told Axios.
- "Now, small-business owners know exactly what I'm talking about, and that is huge progress.
Between the lines: The elevated concern about cybersecurity is directly correlated to awareness of the issue, Sullivan added.
- Recent stories about small-business owners facing scams, phishing attacks and ransomware have inspired entrepreneurs to start digging into their own risks.
By the numbers: Professional services organizations (71%) and organizations with between 20 and 500 employees (74%) were the most concerned about cybersecurity threats in the Chamber's first-quarter survey.
- 48% of small-business owners trained their staff on cybersecurity awareness and protections in the last year.
Zoom out: While two-thirds of small-business owners said they're concerned about cyber threats, 58% also said they're concerned about supply chain disruptions.
- Roughly a quarter of small-business owners (27%) said that they're one disaster away from shutting down.
The intrigue: Small businesses have started to get creative to fill the gap in their cybersecurity plans.
- Some have started enlisting the help of new, university-based cybersecurity clinics, which operate similarly to law school clinics and tap students to consult local businesses on best cyber practices.
- The Chamber also has an online site that shares stories about how small-business owners are tackling various problems, including cyber preparedness.
Yes, but: Small-business owners are most confident about responding to a cyberattack compared with other threats.
- 73% of owners said they are at least "somewhat" prepared to respond to a cybersecurity incident, while 67% said the same about a supply chain disruption.
- Part of this is because small-business owners are starting to understand that they can be proactive to prevent devastating cyberattacks, Sullivan said.
- "Small-business owners get very frustrated when there are things that affect their business that they can't control — or that they perceive they can't control," he said.
