Business owners are putting the future of their companies at risk
Most business owners say it's important to plan for cyberattacks, natural disasters and succession. But the vast majority of owners report they don't have formal plans in place, even as catastrophic weather events continue to rise and ransomware attacks become more common. These findings stem from Nationwide's third annual survey of more than 1,000 business owners across the country with 1-299 employees.
"Business owners are the backbone of our economy," said
Nationwide's survey asked business owners to report their experience across a wide range of topics, and results revealed alarming discrepancies in how business owners think versus how they behave in three main categories:
- Cyberattacks: 83 percent of owners report that they believe it's important to establish security practices and policies recommended by the
U.S. Small Business Administration (SBA) to protect sensitive information, but only 50 percent say they have established security practices to protect sensitive information. - Disasters: 64 percent of owners say it's important to create a preparedness program as recommended by the SBA, yet only 23 percent report that they have created one.
- Succession: 65 percent of owners report that they believe it's important to choose a successor for their business as recommended by the SBA, even though only 37 percent actually have a business succession plan in place.
While many business owners are not prepared for the risks they face, two exceptions stood out.
- Millennials are more likely than Baby Boomers or Gen Xers to say it's important to create a business succession plan (38 percent) and build disaster preparedness kits (35 percent). They say they are also more confident in securing a financial future (82 percent).
African-American business owners are more likely than Hispanic or Caucasian owners to say they have a plan in place to protect employee data (56 percent), a disaster recovery plan (46 percent) and a cyber-attack response plan (41 percent). They also report that they are more confident in securing a financial future (86 percent).
To help business owners prepare and protect their businesses for the future, Nationwide recently launched the Business Solutions Center, a new online suite of solutions that can support them during key stages of development.
The site is designed to help owners identify a wide variety of needs. It also links users to other sources of information that support entrepreneurs, including Nationwide's team of Loss Control Services consultants.
Business owners can also learn how to create a cybersecurity plan, disaster plan and succession plan through the
Learn more on Nationwide's blog page.
Methodology
Nationwide commissioned a 20-minute, online survey among a sample of 1,069
About Nationwide
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1 Conning, 2014; Conning Strategic Study: The Small Business Sector for
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SOURCE Nationwide
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