17 The State of American Finances
As cyber-attacks become more sophisticated and frequent, online security is becoming a growing concern for small businesses. Security threats can mean lost income and additional expenses for small businesses.
50%of small businesses reported being a victim of a cyber-attack
61%of those attacks occurred in 2014
In 2013, cyber-attacks cost small businesses, on average, $8,699 per attack. In 2014 that number skyrocketed to $20,752 per attack.
of small business owners reported that it took three days or more to resolve issues related to a cyber-attack.
Commentary & Conclusions
America’s small business sector has always been the most important engine of the U.S. economy. That is definitely true in the wake of the recession as the economic outlook improves and economic expansion increases. Small businesses do face a number of challenges, however, including financing, available credit, and the increasingly troublesome and expensive problem of cyber attacks and identity theft.
There is a powerful need for:
- 1 Infrastructure upgrades in credit card and banking security technology;
- 2 Access to reasonably priced working capital, and;
- 3 An increase in financial support of small businesses.
In spite of the challenges, small business owners are expecting economic expansion in 2015:
35%of small businesses expect to increase the number of employees
55%expect employee compensation to increase
Today small businesses are continuing to create the majority of jobs in the USA. Small business owners are also making plans to hire more people and offer them higher, more competitive wages.