Kaspersky Security Incident

Budget cuts, product launches, and new investment priorities Introduction Small businesses are the lifeblood of economies around the world. In Europe alone, they account for more than two-thirds of the workforce and more than half of the economic value added. Small businesses help give birth to new ideas, with market disruptive thinking that helps fuel the digital transformation of the world in which we live. However, in such a difficult business climate of the global pandemic, it is only natural that certain operations can fade into the background. But when budgets are tight, just what are small businesses prioritizing? What are the areas that are being pushed out of scope? How will budgets be re-allocated when we finally come out of the pandemic? And what are the potential cybersecurity ramifications? This report aims to find out. Methodology Kaspersky commissioned Arlington Research, an independent market research agency, to carry out research with 3,150 senior decision makers involved in the budgeting process within companies with less than 250 employees. Research was carried out in 22 countries across North America, Europe, Middle East and Africa, APAC, LatAm, and Russia and CIS, in April-May 2021. Quotas were set to achieve an even spread of respondents across three business sizes (1-49 employees, 50-99 employees, and 100-250 employees) in each country. Key findings The pandemic hit small businesses hard: 38% cut their budget to survive And that struggle is likely to continue: 52% of small businesses believe current financial difficulties are likely to become permanent However, many kept on fighting: 29% launched new products 21% entered new business sectors How much of a priority is cybersecurity investment for SMBs? 38% disagree that cybersecurity is not a priority for investment 47% of SMBs struggle to find money to improve protection from cyber-risks The top areas where entrepreneurs are spending money in 2021 are: Advertising and promotion Staffing...

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