Cybersecurity for small business: Why now is the time to prioritise security

Recent research reveals that cyberthreats are not only frequent and damaging – they are an escalating risk for businesses of every size. For small business owners, the imperative to prioritise cybersecurity has never been clearer.

Contents

• The rising threat for small businesses
• The real cost of cyberattacks
• Why cybersecurity must be a top priority
• Key challenges and how to overcome them
• Investing in protection: A strategic imperative
• Take action now

According to a new survey of 2,000 IT security decision-makers in the U.S. and U.K., one in three small businesses has experienced a cyberattack in the past year. While an overwhelming 94% now consider cybersecurity critical to business success. Yet, many small businesses lack the in-house expertise and sophisticated tools available to larger enterprises, leaving them particularly vulnerable to cybercrime.

The shift to remote work, increased use of personal devices, and insufficient security training have all contributed to widening security gaps. While the digital transformation brings flexibility and growth opportunities, it also opens new avenues for potential breaches. The use of artificial intelligence (AI) is accelerating this trend – 81% of small businesses say that AI increases the need for additional security measures.

The immediate and long-term consequences of a cyberattack can be devastating for a small business. The average total cost of an attack stands at $254,445, with some incidents running as high as $7 million. These costs include investigation and recovery, regulatory fines, reputational damage, lost business opportunities, and other unexpected expenses. For example, the average cost for investigation and recovery alone is nearly $78,000, with fines averaging over $20,000, and reputational losses at around $73,000.

Beyond the numbers, the aftermath of an attack can erode customer trust and disrupt operations – setbacks from which many small businesses never fully recover.

With 94% of small businesses acknowledging that cybersecurity is critical, there is broad awareness of the risks. However, the research highlights worrying attitudes: some businesses believe that because they’ve never been attacked, they are safe, or that past incidents make them less likely to be targeted again. In reality, cybercriminals are more opportunistic than ever, often targeting small businesses precisely because they are less protected.

Employee behaviour is another crucial factor. Lack of security awareness and training – especially regarding phishing and the use of AI – continues to expose businesses to avoidable threats. Eight in ten small businesses say that insufficient staff awareness remains a significant concern.

The top challenges faced by small businesses include:

• Protecting confidential data (72%)
• Managing work data on personal devices (52%)
• Securing remote access for employees (52%)
• Phishing attacks (47%)
• Ransomware threats (42%)

Compounding the problem, less than 30% of small businesses manage their IT security fully in-house. Many rely on external consultants, web searches, and analyst reports to select the right cybersecurity solutions.

Encouragingly, about 80% of small business leaders intend to increase cybersecurity spending in the near future. Top areas for investment include enhanced data protection (65%), firewalls (54%), phishing protection (53%), ransomware and device protection (52%), and access control management (46%).

The primary motivators for these investments are protecting the business from financial loss (60%) and safeguarding client data (56%). As cyber risks evolve, proactive measures such as regular employee training, deploying multi-factor authentication, keeping software updated, and establishing incident response plans are vital.

The message is clear: prioritising cybersecurity is not just about compliance – it’s about survival and success. Small businesses have never been more exposed to digital threats, but with the right mindset, training, and investment in proven security solutions, they can build the resilience needed to thrive securely.