Small businesses face an unprecedented wave of threats in 2025. From ransomware attacks that have surged 25% in the past year to increasingly complex regulatory requirements, the risk environment has never been more challenging. According to the latest Verizon Data Breach Report, small to medium-sized businesses (SMEs) now account for 82% of ransomware victims, with at least 80 active ransomware groups operating globally.
While larger corporations have dedicated teams and substantial budgets to handle these mounting pressures, smaller firms find themselves at a significant disadvantage. Allan Murphy Bruun, Founder of SimplerQMS, a cloud-based quality management solutions provider, has witnessed this struggle firsthand.
“The reality is that most small businesses are fighting a battle they’re not equipped for,” says Bruun, a former business systems consultant. “They’re facing the same threats as Fortune 500 companies but with a fraction of the resources.”
This resource gap creates a dangerous vulnerability. With 51% of businesses that suffer data loss shutting down within two years, the stakes couldn’t be higher.
Why Small Businesses Struggle More Than Ever
The disparity between small and large businesses becomes stark when examining risk management capabilities. While enterprises employ dedicated compliance teams, cybersecurity specialists, and risk managers, most SMEs operate with skeletal staff juggling multiple responsibilities.
“Small business owners are often wearing ten different hats,” explains Bruun. “They’re the CEO, the IT department, the compliance officer, and everything in between. When a new regulatory requirement emerges or a cyber threat surfaces, they simply don’t have the bandwidth to respond effectively.”
The financial burden compounds this challenge. Comprehensive cybersecurity solutions can cost thousands monthly, while compliance software and consulting fees quickly drain limited budgets. Many small businesses opt for basic, inadequate protection or delay implementation entirely.
The Resource Gap in Numbers
The statistics paint a concerning picture. Despite handling sensitive employee and customer data, 64% of SMEs remain unfamiliar with cyber insurance options, and only 17% actually carry coverage. This leaves them financially exposed when incidents occur, with the average data breach now costing $4.88 million.
Remote work has amplified these vulnerabilities. With 22% of small businesses lacking mobile device security policies and many remote workers operating without VPNs or multi-factor authentication, attack surfaces have expanded dramatically. Meanwhile, supply chain attacks have doubled in frequency, affecting 30% of all breaches.
“The attack vectors keep multiplying, but small business defences aren’t keeping pace,” notes Bruun. “Cybercriminals know this, which is why we’re seeing such a concentrated focus on SMEs.”
Top Tips for SMEs to Manage Modern Risks
Despite resource constraints, small to medium-sized businesses can take practical steps to improve their risk posture without breaking the bank. Bruun lists those steps here:
- Start with Risk Assessment
Identify your most critical assets and vulnerabilities. Understanding what you’re protecting helps prioritise limited resources effectively. Focus on data that would cause the most damage if compromised, such as customer records, financial information, and intellectual property.
“Most small business owners assume everything is equally important, but that’s not true,” says Bruun. “Start by identifying what would truly cripple your business if it disappeared tomorrow.”
- Implement Basic Cybersecurity Hygiene
Multi-factor authentication, regular software updates, and employee training cost relatively little but provide significant protection against common attacks. These foundational measures can prevent up to 80% of basic cyber incidents.
“Small business owners may think cybersecurity requires a massive investment, but some of the most effective protections are surprisingly affordable,” says Bruun. “Simple steps like enabling automatic updates and requiring strong passwords can block the majority of opportunistic attacks.”
- Leverage Cloud-Based Solutions
Cloud platforms often include built-in security features and compliance tools that would be prohibitively expensive to implement in-house. Major cloud providers invest billions in security infrastructure that small businesses can access for a fraction of the cost.
“The irony is that a lot of small businesses avoid the cloud thinking it’s less secure, when actually it’s often more secure than what they can achieve on their own,” explains Bruun.
- Automate Where Possible
Automated backup systems, patch management, and compliance monitoring reduce the manual burden on stretched teams. Automation also eliminates human error, which accounts for a significant portion of security incidents.
- Consider Cyber Insurance
Even basic coverage can provide crucial financial protection and often includes incident response support. With cyber insurance premiums becoming more affordable for small businesses, the cost of coverage often pales in comparison to potential breach costs.
“Given that 64% of SMBs aren’t even familiar with cyber insurance options, there’s a huge education gap here,” notes Bruun. “The peace of mind alone is worth the investment.”
- Establish Vendor Due Diligence
With supply chain attacks surging, carefully vetting third-party providers becomes essential for maintaining security. Request security certifications and assess vendors’ own risk management practices before sharing sensitive data.
“The interconnected nature of modern business means your security is only as strong as your weakest vendor,” explains Bruun. “Small businesses often overlook this, but a compromised supplier can provide attackers with a backdoor into your systems.”
- Create Incident Response Plans
Having clear procedures for handling breaches or system failures can minimise damage and recovery time. Even a basic plan outlining key contacts, communication procedures, and immediate response steps can reduce downtime significantly.
“When panic sets in during an incident, having a clear plan can mean the difference between a minor disruption and a business-ending crisis,” says Bruun.
- Regular Staff Training
Since employees are often the first line of defence, regular cybersecurity awareness training helps staff recognise and respond to threats appropriately. Focus on common attack vectors like phishing emails and social engineering tactics.
Allan Murphy Bruun, Founder of SimplerQMS, commented:
“The reality is that small businesses can’t afford to ignore risk management any longer, but they also can’t afford enterprise-level solutions. The key is starting with the basics and building incrementally rather than trying to solve everything at once. With 51% of businesses that suffer data loss shutting down within two years, even small steps toward better risk management could be the difference between survival and becoming another statistic.”
