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Big Cyber Challenge to Small Businesses

 

The number of startups and micro, small and medium enterprises (MSMEs) are growing in India. They contribute considerably to the Indian GDP. They will play a crucial role in making Bharat a $5 trillion economy in the near future. They face many challenges to making their businesses sustainable and profitable. Cyber threats have emerged as one of the significant threats for big corporations as well as MSEMs. Cyber threats remain similar for big corporations as well as MSMEs. This is because both kinds of organizations use technology to capture, process and store sensitive data and information. This data includes financial data, customer data, intellectual property (IP), transactional data, and business emails.

Major cyber threats to MSMEs and startups are spam and phishing attacks, ransomware attacks, distributed denial of service (DDoS) attacks, identity theft, data theft, and IP theft. A recent report by the Cyber Peace Foundation revealed that 43% of cyberattacks target MSMEs and startups. The report's findings show that about 46% of SMEs are clueless when addressing cyber risks. Furthermore, around 60% of these small businesses that fall prey to cyber incidents shut down within six months. A study by cybersecurity firm Trellix indicated that Indian SMEs faced an average of 37 cybersecurity incidents daily, leading to a loss of nearly 7 per cent in revenue.

Big corporations are making investments in cybersecurity technologies to tackle cyber challenges. MSMEs and startups are at a disadvantage as they operate with limited resources. However, business owners must realize the financial implications of cyberattacks. It is essential to recognize that allocating resources to cybersecurity is an investment in the long-term protection of the business. Investing in cybersecurity early on is more economical than coping with the fallout following a breach, which can include monetary and reputational losses and legal ramifications.

Ignoring cyber threats will not solve business owner's problems. They need to understand cyber risk and take steps to mitigate it. The following points will help business owners to minimise cyber risks.

1.     Acknowledge cyber risk as a business risk.

2.     Use a holistic approach to cybersecurity rather than deploying cybersecurity countermeasures like anti-malware and firewalls without an appropriate strategy.

3.     Educate your employees and other stakeholders about cyber threats and their roles in preventing them.

4.     Stay prepared for cyberattacks.

5.     Work with the right technology partners.

In conclusion, SMBs and startups are central to India's growth story. With limited resources, they are also an attractive target for threat actors. Cyber incidents may have devastating effects on SMBs and startups. They must prepare themselves to take the cyber challenge head-on.

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