Your small business is at greater risk than you think

Disclaimer: this was written using a hypothetical prompt from a hypothetical client. The full brief is at the end of the article.

Since the pandemic, the number of micro, small, and medium enterprises (MSMEs) in South Africa has noticeably increased. A significant contributing factor is the high unemployment rate. MSMEs provide employment opportunities and significantly contribute to a country’s economy.

Starting a small business

Of course, for every business owner who is looking to be successful, there are multiple factors to consider. This growth is not just for their benefit, but for the benefit of the entire country. As much as MSMEs contribute to the economy, that same economy can be a huge obstacle. For example, inflation causes an increase in the cost of operation which means MSMEs either need to increase their rates or be extremely careful about where they use their money – most likely it is both.

In a 2024 MSME survey by FinScope, it was noted that “MSME sector accounts for 80% of the workforce”, and yet they are the businesses that are struggling the most, financially. Because of their need to be maintain financial capital, business owners must consider opportunity cost. They will need to forego some things in the budget to make room for others. An area that is often overlooked, which should be taken a lot more seriously, is an investment in cybersecurity.

Businesses in the digital space

In today’s landscape, having a digital footprint is significant in any business’ marketing success. The increase in online presence means an increase in cybersecurity risks. When a business has not yet been a victim of cyber attack, it is common to believe that the threat to their cybersecurity is minimal. Cyber threats are intangible, but can cause irreparable damage to a MSME. It would be infinitely better to be prepared for an attack than have to do damage control after an attack has already occurred.

Most MSMEs do not recover. The fact that this threat is underestimated makes it even more dangerous. Hackers know that MSMEs are vulnerable because of lack of resources, hence them being labelled as easy targets. They are easier to trick into giving out important information, sometimes out of desperation.

There is a statement that is often associated with experiencing a cyberattack: “we never saw it coming”. Even though that may very well be the case, there are ways a business can prepare for something like this. It is infinitely better to be over prepared for a cyberattack than to be picking up the pieces after it has already happened.

Cybersecurity and threats

The threats do not always come in obvious ways like malware. Recently, cybercriminals have been taking advantage of the fact that MSMEs have weak defenses and untrained staff. The more common attacks come in the form of email impersonation and taking advantage of weak password systems that do not have multifactor authentication.

Email impersonation refers to scammers posing with a well-known company's name, but with slight differences in the email address that would give them away if people knew what to look for. These emails usually contain links that will take the viewer to a website that requests important information in a convincing way. This is referred to as phishing attempts.

Photo by Towfiqu barbhuiya on Unsplash

It is vital that everyone within MSMEs is given the proper training on what to look out for and how to handle possible cyberattacks. Choosing the right company to provide that training is equally important. Our report on MSME cyber attacks will give you everything you need to know about your ideal next step. Phishing attempts and malware are most common and can result in the sale or leaking of personal information of the business as well as its clients/customers.

Losing the trust of clients can be extremely difficult to build back up from. Training is essential but often overlooked due to tight budgets, and underestimating online threats. Training for companies is available if you know where to look. Employees have to know the constant risks of being online. To read the full report on how to best prepare a MSME for cyberattacks, click here. Business who have already done it have said that it's quick, easy and has left them feeling more secure in their business.

Brief

Client: Cybersecurity consultancy Brief:

Length: 500–700 words

Topic: “Why SMEs Are the New Target for Cybercrime”

Tone: Formal, data-driven, but engaging.

CTA: Drive traffic to a gated report download.