|‘Worrying’; considering SME are the ‘backbone of the economy’|
65% of UK Small Businesses do not have plans in place to deal with potential supply chain disruption, including cybercrime.
New research has been conducted by the Federation of Small Business (FSB) looking widely how the UK can better use supply chains identified some of the biggest risks facing UK SMEs. There were key vulnerabilities identified in the IT space, with general IT problems being a risk to 29% of UK SMEs and the impact of cybercrime rising to 17%.
The report found that just 35% of SMEs have plans in place to deal with any potential disruption to their business or supply chain. Key threats include late payment from customers (51%) or disruption caused by changes amongst key staff members (37%). Further risks identified included general IT problems (29%), the impact of cybercrime (17%), severe weather (13%) and terrorism (1%).
Smaller businesses are the most vulnerable to such risks due to their size & lack of resources. Following the report the FSB has called for more to be done by larger companies in supply chains to support small business and to support channels backed by central Government and Local Authorities which emphasise the need for smaller firms to have continuity plans in place as a routine measure.