Technology adoption has always been a major challenge for the MSME sector due to lack of capital and poor understanding of digital tools. Despite their limitations, an increasing number of small businesses are incorporating technology and digitization in some form or another. While they are largely unfamiliar with the technology know-how, they do understand that it is crucial to drive efficiency and growth and compete with large enterprises.
A 2019 survey of 2250 MSMEs from different industry verticals across 34 Indian cities found that 35% of MSMEs have adopted business management software for digital banking, payment services, customer relationship management and financial applications.
In a recent survey undertaken to understand the digital transformation of MSMEs in the wake of COVID-19 and lockdown revealed some welcome insights. 30% of MSMEs launched either a website or e-commerce functionality and over 50% of MSMEs either researched or adopted WhatsApp and video conferencing tools to keep their business afloat during this period.
While these developments certainly highlight that the MSME sector is gradually undergoing a digital makeover, they also bring along digital security issues on the flip side.
Why Digital Asset Security is Crucial for MSMEs?
Small businesses are well-acquainted with operational and financial risks, but their ignorance towards digital or cyber risks has emerged as a cause of worry.
According to a report by the cybersecurity company Kaspersky
• 48% of small businesses witnessed data breaches in 2019, up from 46% in 2018.
• 36% reported the incidents in 2019, again up from 30% in 2018.
• 47% claimed that they were struggling to distinguish between generic and advanced cyber attacks.
These statistics indicate that the MSME sector is highly vulnerable to digital threats. They need to realize that their digital assets need to be protected similarly as physical and intellectual assets. Or else, they will not be able to reap the benefits of technology to the fullest potential.
With the ruling government’s thrust on Digital India Campaign and Atma Nirbhar Abhiyan, the digital adoption is poised to become a norm for the MSME sector to survive and thrive. They will be required to find ways to protect their digital assets such as website, business software, domain names, URLs, IP addresses, emails accounts, customer/employee use IDs and passwords, apps, social media accounts, servers, computing devices and everything else that falls under the purview of ‘digital’.
How can MSMEs Ensure Digital Asset Protection?
Firstly, MSMEs need to focus on formulating a robust digital asset protection strategy and integrate it into the overall business strategy. This will ensure that digital security practices become the fundamental way of doing things in the organization from top to bottom in the hierarchy.
Secondly, MSMEs should deploy cybersecurity solutions that are easy to deploy and manage, and most importantly, can be tailored to your small business needs. Currently, there are a few trusted cybersecurity service providers like Kaspersky which offer hassle-free digital asset protection solutions exclusively targeted at small businesses. Kaspersky ensures that all your digital assets remain protected against every possible cyber threat while you focus on growing your business and taking care of your customers.
Digital asset protection is the need of the hour for the MSME sector. It’s about time that MSMEs look at this as a fruitful and necessary investment and not as an expense.