Cybersecurity in Small Businesses

1 Benchmark - Small to Medium-Sized Business The internet is a very useful tool for businesses and organizations when used in the right way. When used inappropriately, the internet has the potential to pose a dangerous problem to SMBs. The internet plays an increasingly important role in the modern business environment. It has significantly increased the potential of businesses and led to the development of new concepts such as e-business and e-commerce. The internet has disrupted the traditional ways of conducting business.

The internet is a crucial business tool in the modern hypercompetitive business environment because it facilitates communication, trade, entertainment and education. Prior to the advancement of the internet, SMBs operated without much knowledge of what the market needed and used traditional methods of advertising. This changed with the inception of the internet, businesses have undergone major structural changes that have revolutionized how they function and conduct their activities.

The internet is used at all levels and stages of SMB’s operations. It is used in the generation of ideas, production, marketing, selling, supply chain management and filing taxes.

This paper examines the implications of internet use within SMBs.

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2 SMBs and the Internet The internet will continue to become an integral business tool, thus businesses should optimize it to enhance their competitiveness and productivity. The degree to which SMBs benefit from the use of the internet varies with their level of adoption. In 2015, Sberbank, a Russian bank issued over 100,000 loans to small and medium size business in the country online (Ensari, & Kiygi-Calli, 2017). Additionally, globally, banks allow SMBs to open and operate bank accounts online. This demonstrates one fo the ways that the internet has facilitated the growth of SMBs. The internet has also made it easier for SMBs across the world to interact with their stakeholders such as customers, suppliers, authorities and the public. The internet allows businesses to effectively conduct research and marketing activities.

The internet is one of the most crucial instruments for modern-day businesses. It provides more opportunities for SMBs to sell their products and services to a global audience. It has also changed how small and medium-size businesses operate for the better, but at the same time has exposed businesses to scams, abuse, intense competition, and obsoletion due to rapid change in technology trends (Harwood, 2015).

SMBs are immensely important to the economy of a country. They provide employment opportunities, and contribute significantly to entrepreneurship and innovation. Given the importance of SMBs to the economy, it is crucial to incorporate internet usage into the core of its business operations due to the immense opportunities and benefits it offers.

SMBs encounter several challenges that require innovative solutions. Some of these challenges include the increased competition due to the globalization of economies, increased emphasis on making decisions based on accurate data and information, and customer-centrism.

To be effective, SMEs must use the internet to enhance their efficiency. Innovativeness and

3 competitiveness. Information and information technology are vital for the survival of SMBs in today’s rapidly changing business environment.

Unique Characteristics of SMBs SMBs possess certain unique attributes that distinguish them from large organizations.

Firstly, SMBs create their corporate and technology policies differently from SMBs. SMBs have a less structured approach to creating policies, whereas large organizations have a more defined method of creating strategies and policies. SMBs also have a lower capacity to implement new technologies at the same level as larger corporations. Many SMBs lack the knowledge and expertise to sufficiently incorporate the internet into their operations. This makes SMBs more vulnerable to business failure.

SMBs and Third-Party Vendors With the growth of the internet, SMBS rely increasingly on third-party vendors to host their data, supply goods and services and to manage different aspects of the organization. Small and medium businesses have to manage vendor relationships effectively for the continued success of their operations. Third party vendors, however, pose a significant risk to the security of a business’ information technology. Third-party vendors include Internet Service Providers (ISPs), public clouds, suppliers and consultants. SMBs should take all the measures available to safeguard against data breaches caused by third-party vendors. This is referred to as vendor risk management (Rajagopal, & Behl, 2016).

There are six steps to managing third-party vendor risk. The first step is to evaluate the business’ current position with regard to managing risk. The second step is to determine the best measures to use to limit risk exposure. This includes vetting every vendor to ensure that they comply with the business’ policies. Thirdly, the business should be cautious not to share

4 information that compromises its security. Fourthly, it is crucial for the business to inform vendors its cyber-security position. This will help them know what is expected of them and how to meet the requirements. Fifthly, SMBs should perform regular audits of its third-party vendors to ensure their compliance. The sixth and final step is to conduct review and update its cybersecurity policies and practices as the risks change. It is essential to only retain third-party vendors that comply with SMBs cyber-security risk practices.

Cloud Technology Cloud computing is a network-based environment that is commonly used in small and medium sized businesses to store and access data and information. It is popular with SMBs because it simplifies the process of managing IT infrastructure while enhancing scalability and sustainability of operations. It is also makes the process of acquiring modern IT infrastructure more affordable, given that SMBs often have limited capital and cash flow. However, transferring to cloud-based technologies often comes with risks. These risks include data loss, compliance violations, identify theft, data security breaches, denial of service and insider attacks (Greengard, 2015). This has the potential to reduce customers’ trust in the business, and ultimately lead to revenue loss. To manage this risk, it is important for SMBs to audit the security and privacy policies of providers to ensure that they have the ability to provide secure solutions.

Technology Trends The modern business environment features rapidly evolving technologies that businesses should adapt to promptly or face the risk of obsolescence and inability to compete effectively (Schober, & Schober, 2019). Businesses should developed a comprehensive risk management plan to reduce their exposure to the risks that occur as a result of adopting IT.

5 Conclusion The use of the internet has significantly improved the performance of small and mediumsize businesses, and has the potential of increasing their scalability and productivity. It enables businesses to access capital faster, access information more easily, and to connect with their stakeholders more effectively. Essentially, it has re-shaped how SMBs do business. However, as much as it accrues advantages to the organization, it also poses significant risks which need to be managed in order to harness the benefits.

References Ensari, M., & Kiygi-Calli, M. (2017). How Small and Medium-sized Enterprises (SMEs) can be competitive. LIT Verlag Münster.

Greengard, S. (2015). The internet of things. MIT Press.

Harwood, M. (2015). Internet Security: How to Defend Against Attackers on the Web. Jones & Bartlett Publishers.

Rajagopal, & Behl, R. (2016). Business analytics and cyber security management in organizations. IGI Global.

Schober, S., & Schober, C. (2019). Cybersecurity is everybody's business. Scottschober.com Pub.