A survey, commissioned by CyberSmart and conducted by Censuswide, surveyed a thousand senior leaders and decision-makers from SMEs across the UK
According to the findings, a staggering 21% of UK SMEs – more than one in five – express deep concern about their survival prospects amidst the current economic ambiguity. These businesses either fear an impending collapse or anticipate the need to execute substantial shifts in their operational strategies to navigate these uncertain waters.
The scale of this issue is substantial considering the UK government’s estimation of the country housing at least 5.5m SMEs. Extrapolating the survey’s results reveals a potentially distressing scenario where over 1.155m SMEs find themselves in precarious positions, facing the imminent risk of collapse.
Equally striking, the survey delves into the extreme measures that some SME senior leaders are willing to contemplate to secure their businesses’ survival. These inclinations span a broad spectrum, ranging from engaging in cybercriminal activities and resorting to accounting fraud, to even overlooking essential compliance obligations.
Notable Contemplations by SME Senior Leaders Include:
Accounting Fraud and Deception: 15% of respondents would consider committing accounting fraud, misleading bankers and investors to secure funds, or engaging in tax fraud or evasion. This percentage could potentially encompass up to 825,000 SMEs.
Employee Compensation Cuts: 14% of surveyed leaders would entertain the idea of reducing employee salaries or benefits, potentially affecting around 770,000 SMEs.
Exploiting Proprietary Information: 11% of participants would be open to utilizing proprietary data obtained from partners or clients, potentially impacting 605,000 SMEs.
Neglecting Compliance Obligations: Another 11% of respondents would contemplate sidestepping compliance requirements to mitigate additional costs, a stance that might affect 605,000 SMEs.
Engaging in Cybercriminal Ventures: 10% of senior leaders expressed a willingness to indulge in cybercriminal activities, such as launching cyberattacks against competitors, putting around 550,000 SMEs at potential risk.
Personal Sacrifices: 9% of those surveyed would consider mortgaging their homes to secure their businesses, a measure that might resonate with up to 495,000 SMEs.
Another worrisome aspect revealed by the press release is the declining investment in cybersecurity among SMEs. Notably, one-third of these businesses have reduced their cybersecurity expenditures due to the economic uncertainties they face. Even more concerning is the admission by some SMEs that they have never truly invested in cybersecurity.
Alarming statistics emerge from the survey, with 42% of SME senior leaders doubting the value of investing in cybersecurity. This sentiment is compounded by the fact that 21% of respondents believe they aren’t viable targets for cyber threats. Additionally, 16% feel protected due to cyber insurance coverage, and 10% dismiss cybersecurity as a priority.
Only a quarter (25%) of respondents recognise the significance of cybersecurity investments, driven by the understanding that they cannot afford to suffer a breach.
CyberSmart CEO, Jamie Akhtar reacted with the following:
“As a business owner myself, I can understand the pressure many SME decision-makers are currently facing to keep their companies running and ensure their employees are taken care of, all while budgets tighten. It is during these times that emotions run high, and people might make irrational decisions that go against their own, and their company’s, best interest. It goes without saying that we would never condone criminal behaviour. Moreover, we would strongly recommend that businesses invest in cybersecurity and compliance.”
“The business ecosystem has become highly intertwined, so no business is immune from cyberattacks. In fact, SMEs could prove to be an easy entry point for cybercriminals looking to hit others within their supply chain, if they have weak cybersecurity postures. While cyber insurance is important for risk transfer, it should not be relied on either. A comprehensive and continuous cybersecurity and compliance strategy is needed to avoid a breach’s financial, reputational and even physical repercussions. Fortunately, there are solutions today that can help in doing so, without breaking the bank.”
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