A recent global study conducted by Sage, a leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs), has revealed that SMBs worldwide are facing significant challenges when it comes to cyber security. In fact, the study found that keeping up with new threats is the greatest cyber security challenge for these businesses. More than half of the surveyed SMBs expressed the need for help in managing these risks.
The research highlighted that SMBs in the United Kingdom are particularly struggling with cyber security preparedness. Fifty-seven percent of UK SMBs expressed the need for additional support with education and training, while 45% admitted to not fully understanding the security measures necessary for their business. This lack of understanding and preparedness puts these SMBs at risk of cyber attacks and data breaches.
Despite the concerns and challenges, the study also found that UK SMBs reported the fewest cyber security incidents in the past year compared to other countries. Only 42% of UK SMBs reported experiencing a cyber security incident, highlighting a potential gap in their reporting or detection capabilities.
Globally, the study revealed that 70% of SMBs view cyber threats as a major concern. However, 72% of these businesses feel confident about managing cyber security, and 76% regularly review their security measures. While this confidence is a positive sign, the study identified several key challenges that SMBs face in maintaining effective cyber security.
According to the research, the top challenge for SMBs globally is staying on top of new threats, as cited by 51% of respondents. This is followed by ensuring that employees understand their role in cyber security (45%), educating staff about cyber security (44%), and managing the cost of implementing security measures (43%).
In the UK, only 48% of SMBs plan to increase their cyber security investment next year. The study found that 29% of these businesses have reduced their cyber security budget due to the increased cost of living. However, over half of UK SMBs believe that the government (55%) and cyber security companies (52%) should do more to support them in terms of education and training.
Ben Aung, EVP Chief Risk Officer at Sage, acknowledged the challenges faced by SMBs in navigating the world of cyber security. He emphasized the need for guidance and support in comprehending and mitigating risks beyond the misconception that security solely relies on firewalls and tools. Aung reiterated Sage’s commitment to making cyber security accessible to SMBs, empowering them to strengthen their security culture even with limited budgets.
The research also shed light on the fact that UK SMBs are not prioritizing cyber security as much as they should. The study found that only 42% of UK SMBs regularly discuss cyber security, slightly higher than the global average of 40%. Smaller businesses, in particular, tend to invest less in cyber security and have less knowledge about cyber controls.
However, the study revealed that a significant number of SMBs worldwide are willing to spend more to ensure better cyber security. Two-thirds of global SMBs stated that they would choose a more expensive supplier and allocate more budget to a company that has better security measures and provides detailed information about the privacy and security of its products.
Maria Kelly, Operations Manager at Roche Healthcare, a care home business based in Leeds, emphasized the importance of affordable practical advice and support in dealing with cyber security challenges. Kelly expressed that businesses need access to knowledge and guidance to protect their data and minimize risk. She highlighted the crucial roles that technology companies and the government play in providing this support.
Simon Borwick, Cyber Security Partner at PwC UK, acknowledged that cyber crime is a real threat to SMBs of all sizes. He stressed the need for collective action when it comes to addressing this challenge, especially considering the potential vulnerabilities within supply chains and the dependence on major suppliers and government authorities. Borwick also highlighted the unique opportunity for organizations to enhance their reputation and build trust by effectively tackling cyber security issues.
Overall, the research conducted by Sage has emphasized the need for SMBs to prioritize cyber security and seek support in managing the associated risks. The study has highlighted the challenges faced by SMBs globally, with UK businesses in particular expressing the need for more education, training, and guidance. By addressing these challenges and investing in effective cyber security measures, SMBs can safeguard their data, protect their reputation, and continue to grow their businesses.