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Tugboat Logic Survey Reveals the Need for a Strong Security Posture for SMB Growth
March 2021 by Tugboat Logic
Small and medium-sized businesses face a unique set of challenges when it comes to adopting security practices, especially those that run lean. To better understand these challenges, Tugboat Logic announced the results of a survey of small and medium-sized businesses and mid-market SaaS providers. The findings showed that when SMBs set up infosecurity and compliance as part of their roadmap, they achieve greater customer growth and scalability.
There are many important factors for SMBs to consider when building out a business growth roadmap. The survey objective was to identify the biggest SMB pain points and their customer care abouts. The results revealed that infosecurity and compliance need to be built into the SMB growth roadmap as a KPI. The survey also revealed that successful smaller organizations lead with a “security-first” mindset.
Three main themes emerged from the survey:
A security-first mindset is key: Traditional security protocols are viewed as stagnant and rigid processes that cut into a SMB’s productivity, so they are often left as an afterthought. However, the?most significant?risk?for SMBs is often a?data breach?resulting in financial loss and reputational damage.?Of the respondents Tugboat Logic surveyed:
– 85% said that security is highly important to their customers
– 70% shared that preventing security breaches is their customers’ biggest concern
– 58% of respondent customers’ biggest concerns are about meeting regulatory requirements and preventing breaches
Smaller businesses face bigger risks: The data breaches that compromise hundreds of thousands — or millions — of records are the ones that tend to grab the headlines, but SMBs are far from immune to cyberattacks. In fact, they are often targeted more frequently. And according to the Ponemon Institute, the average cost of an attack against an SMB is $200,000.
Regarding what kept them from their security goals, survey respondents reported the following issues were stalling their progress:
– 85% said lack of internal resources prevented their business from adopting new security practices
– 48% said the cost of implementing security was prohibitive or a challenge
– 41% said lack of education in security awareness
Regulation station: Too many startups, and even later stage companies, suffer from lack of a clear and well-structured plan for security and privacy. This security shortfall comes front and center at quarter’s end when that must-have customer win slips away due to failure to meet compliance requirements.
Respondents from the Tugboat Logic survey agree, saying:
– SOC 2 certification is the most important certification when it comes to compliance, according to 92% of respondents
– 68% of respondents said their audit process has improved business practices, increased revenue or gained/retained customers
Ray Kruck, founder and CEO, Tugboat Logic, said: “When SMBs make infosecurity and compliance a key performance indicator for the business, it will set them up for success. Tugboat Logic has found that organizations who prioritize security and privacy as product features shorten their sales cycles by up to 40% and reduce the reputational risk that can impact churn or new customer acquisition. We look forward to continuing to help customers plan and implement a security program for their organizations and prepare them for the certifications that will take their business to the next level.”
