Freely subscribe to our NEWSLETTER

The leader in accounting, financial, HR and payroll technology for SMBs has conducted global research to investigate SMBs’ perceptions of cyber security and the key hurdles they are facing in this space. Through the study, Sage aims to demystify cyber security and turn it from a daunting challenge to an empowering tool so SMBs can focus on growing their business, developing their teams, and providing outstanding customer experience.
The research reveals:
• 48% of SMBs have experienced a cyber security incident in the past year, and 25% have experienced more than one
• 70% of SMBs say cyber threats are a major concern, however 72% feel confident about managing cyber security and 76% regularly review it
• Keeping on top of new threats is the biggest challenge for 51%, followed by making sure employees know what’s expected of them (45%), educating staff about cyber security (44%), and cost (43%)
With cyber threats multiplying, knowing what is important, where to start and overcoming cost barriers is critical for SMBs that want to bolster their cyber resilience.
56% of SMBs are calling on cyber security companies to do more to educate and support them, while 45% put the onus on governments to act and 43% on trusted tech partners. Over half (52%) want support with education and training.
Ben Aung, EVP Chief Risk Officer, Sage, said, “Navigating the fast-paced world of cybersecurity can be overwhelming for SMBs, who often lack dedicated IT expertise. While our research highlights their genuine concern for cybersecurity, they seek guidance to comprehend and mitigate risks beyond the misconception of it merely relying on firewalls and tools. At Sage, our commitment is to make cybersecurity accessible, fostering confidence through knowledge, resources, and a human-centric approach, empowering SMBs to strengthen their cybersecurity culture even with limited budgets.”
The research also reveals that only 4 in 10 SMBs discuss cyber security regularly, mostly when something changes or goes wrong internally or with another company. In terms of size, smaller businesses are less concerned with cyber security, have less knowledge about cyber controls, and generally invest less in cyber security.

The research findings also highlight that two-thirds of SMBs are prepared to spend more to
ensure better cyber security. 68% say they would use a more expensive supplier and spend more budget on a company if they had better security and displayed more information about the privacy and security of their products.

Lynne Pace, CFO & VP of Finance for Danson Construction, said, "In today’s digital realm, cyber security hurdles are a constant reality for businesses like ours. We face daily data threats, phishing attempts, ransomware attacks – it’s a maze out there. As a small business, juggling protection and growth is a real challenge. The cyber world is a puzzle we can’t ignore. Safeguarding while advancing is the name of the game, and finding solutions that fit our size is a must. In this journey, a helping hand from tech companies and government support is crucial. With their help, we can navigate this intricate landscape with more confidence,"

Simon Borwick, Cyber Security Partner at PwC UK, said, “Cyber crime is now a real threat to small and medium businesses, irrespective of their scale. Their digital presence can turn into a potential weak link within the supply chain. Dependence on major suppliers and government authorities requires collective action. At the same time, tackling this looming challenge also presents a unique opportunity to carve out a distinct competitive edge - enhancing an organisation’s reputation and building trust.”

Currently, 64% of SMBs use cyber insurance and 74% plan to use it next year. At the same time, 91% expect their investment in cyber security to either increase or remain the same in the coming year.

Methodology

Sage’s research was conducted by independent market research company, Danebury Research, between 4th April and 15th April, 2023, via 2,100 online interviews with decision makers in SMBs with up to 499 employees.

The 2,100 interviews were split across nine markets. These were: UK (500), U.S. (500), France (100), Germany (100), Portugal (100), Spain (100), South Africa (100), Canada (500) and Australia (100). In addition to presenting global, overarching trends, the results were broken down into individual market tables and regional samples.