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Small business cybersecurity is becoming an increasingly important priority as cyber threats continue to evolve. While business owners are increasingly aware of the risks they face, many are still uncertain about whether their organizations are fully prepared to respond.
According to a Small Business Expo Research Team survey of 440 U.S. small business owners, 43.4% identify phishing and email scams as the biggest cybersecurity risk to their business. However, only 19.5% say they feel very prepared for a cyberattack, highlighting a gap between recognizing potential threats and feeling confident in the ability to defend against them.
Taken together, the findings suggest that cybersecurity awareness among small business owners is relatively high, but preparedness continues to lag.
Highlights
- 43.4% say phishing and email scams are their biggest cybersecurity risk.
- Only 19.5% feel very prepared for a cyberattack.
- 51.1% say they feel at least somewhat prepared.
- 33.2% are neutral about their level of preparedness.
- 15.7% admit they are not prepared for a cyberattack.
Small Business Cybersecurity: Phishing Remains the Biggest Threat
When asked to identify the biggest cybersecurity risk facing their business, respondents overwhelmingly pointed to phishing and email scams.
At 43.4%, phishing was selected more than twice as often as the next highest concern, software vulnerabilities (18.0%). Other risks included third-party vendors (15.2%), weak passwords and access controls (11.8%), and employee mistakes (11.6%).
The results reflect the continued effectiveness of phishing attacks, which increasingly rely on convincing emails, fake invoices, fraudulent login pages, and AI-generated messages designed to trick employees into revealing sensitive information or transferring funds.
Industry research has consistently found phishing to be one of the most common entry points for cybercriminals, particularly among small businesses that may have fewer dedicated security resources.¹
Preparedness Doesn’t Always Match Awareness
Although respondents appear to recognize the primary small business cybersecurity threats, many expressed only moderate confidence in their ability to defend against them.
Just 19.5% reported feeling very prepared for a cyberattack, while 31.6% said they were somewhat prepared. The largest single group (33.2%) selected neutral, suggesting uncertainty about whether their existing cybersecurity measures would be sufficient.
Meanwhile, 15.7% acknowledged that they feel either not very prepared or not prepared at all.
The findings indicate that awareness alone may not translate into confidence. Many business owners understand the risks but remain unsure whether they have the tools, policies, and training necessary to respond effectively.
Cybersecurity Is About More Than Technology
The survey also highlights how business owners view small business cybersecurity through multiple lenses.
While phishing dominated the responses, nearly one-third of respondents identified software vulnerabilities or third-party vendors as their greatest concern. Others emphasized weak passwords and employee mistakes, reinforcing the idea that cybersecurity extends beyond firewalls and antivirus software.
Effective cybersecurity often depends on a combination of secure technology, employee awareness, access controls, software updates, and clearly defined response procedures. Even a single compromised password or successful phishing email can expose an entire organization to significant operational and financial consequences.
Organizations such as the Cybersecurity and Infrastructure Security Agency (CISA) recommend regular employee training, multi-factor authentication, timely software patching, and incident response planning as foundational practices for reducing cyber risk.²
Closing the Preparedness Gap
Perhaps the most significant takeaway from the survey is the disconnect between recognizing cyber threats and feeling ready to address them.
Business owners appear well aware that phishing represents a serious risk, yet relatively few express complete confidence in their cybersecurity readiness. As cyberattacks become more sophisticated, the challenge for many small businesses may no longer be identifying the threat—but ensuring they have the people, processes, and technology in place to respond when an attack occurs.
Final Takeaway
Small business cybersecurity is entering a new phase. Owners increasingly understand where the greatest threats originate, with phishing emerging as the clear leading concern. However, recognition alone isn’t enough. Closing the gap between cybersecurity awareness and preparedness will be essential as small businesses continue to navigate an increasingly complex digital landscape.
Footnotes
- Verizon. 2025 Data Breach Investigations Report. https://www.verizon.com/business/resources/reports/dbir/
- Cybersecurity and Infrastructure Security Agency (CISA). Cyber Guidance for Small Businesses. https://www.cisa.gov/resources-tools/resources/cyber-guidance-small-businesses
Related: The Biggest Requirement for Running a Small Business: Adaptability