Nearly half of SMEs have experienced multiple cyber security breaches over the last three years, with the average financial loss amounting to €8,500, according to a study carried out by Vodafone Ireland and Microsoft Ireland. 

The research was carried out among 250 SME business owners with 9-50 employees.

The survey also found that one in three of the cohort have reduced their spend on cyber security, with 60% admitting that they are unprepared to prevent a cyber-attack.

HLB’s Cybersecurity Report 2022 finds that human behaviour is the greatest barrier to cyber security, with most data breaches being linked to human error.

Whilst only 7% of respondents surveyed as part of the HLB research believe there has been a decline in cyber attacks over the past 12 months, 78% expressed concern that their organisation is not fully prepared for an attack.

In Association with

The accountancy firm surveyed 753 senior IT professionals in September 2022 via an online questionnaire.

Mark Butler, HLB’s Ireland managing partner, commented: “Digital transformation has changed the way we work, and in many cases this has opened us to a greater risk of cyberattacks due to the pace of technology adoption, resulting in a lag in training, awareness and contingency planning.

“Businesses need to invest in more robust frameworks and training programs to protect their employees and the longevity of their business from the negative impacts presented by the ever-evolving cyber-environment.”

Digitalisation trends

E-commerce solutions are increasingly being used to drive revenue, the Vodafone/Microsoft survey sample found, with almost 60% of business owners suggesting that this accounts for between one-fifth and one-half of their revenue.

That said, over half the survey respondents consider digitalisation to be a medium to low priority. The rate of digitalisation is starting to decrease from its high point during the pandemic.

Sinéad Bryan, managing director of Vodafone Ireland Business, commented: “Our study shows that those SMEs that were agile and adaptable and embraced technology over the last 24 months managed to grow revenue, reduce debt and move to target opportunities across international markets.

“Irish SMEs are traditionally known for their strong focus on the domestic market, but with expansion to markets abroad they will have a need to invest in new technologies to achieve a strong position.”

When asked about their wider business confidence, the report found that the majority of business owners expect to see growth in the next 12 months, with more than 40% expecting to achieve growth of between 25% to 50%.

Anne Sheehan, general manager of Microsoft Ireland, said: “Our study highlights the significant rise in the rate of digitalisation among SMEs during the pandemic, and the direct financial and business growth that this has created.

“As the cornerstone of Ireland’s economy and a core driver of post-pandemic economic recovery, it is of the utmost importance that SMEs maintain a position of digital perseverance.”

Methodology for the Vodafone/Microsoft survey was not disclosed. Other survey results include:

•    Three in 10 survey respondents have seen their net profit by 20% to 40% in the last 12 months.

•    Two thirds of respondents have reduced their debt levels in the last year.

•    One in three young entrepreneurs believe there are significant barriers for younger people to build their businesses within the Irish economy.

•    45% of young entrepreneurs feel that their age, in the eyes of others, holds them back from fully succeeding as a young business owner.

•    84% of businesses in towns and villages said they have access to the infrastructure and supports they need to grow their business.

•    89% also said they have the connectivity they need to run their business.

Photo: Anne Sheehan (left) and Sinéad Bryan