Kinetic survey finds SMBs’ cybersecurity issues constrained by budget issues

Yet, most (59%) said their business needs to improve cybersecurity and compliance in 2025. In developing the report, Kinetic surveyed 300+ owners, directors, and managers at SMBs in the U.S. to better understand their connectivity needs, priorities, and challenges.

Over half (52%) of respondents said they are not very confident in managing a cybersecurity threat and don’t have the resources to implement better security technology, leaving their company. Customers are open to what could be a costly breach.

“There is a misalignment between business owners knowing they need to improve cybersecurity and have the budget and capabilities to do so,” said Mike Flannery, president of Kinetic Business, in the report. “It’s evident small to medium-sized businesses are strapped for time and resources, giving cyber-criminals an opening to disrupt daily operations.”

A costly threat

Although SMBs may not be as large or prominent as large enterprises, their presence continues to impact the U.S. economy.

According to the U.S. Chamber of Commerce, small and mid-sized businesses represent 43.5% of the U.S.’s GDP. Still, they face many unique challenges across many facets of their companies, some of which they have no control over.

Often viewed as an enterprise business problem, cybersecurity is a significant threat to SMBs, which lack the resources to thwart attacks. 

Four out of 10 (43%) cyberattacks target small businesses, and a breach's cost averages $25,000. Additionally, one in four small companies says they are one disaster or threat away from shutting down. Comprehensive, easy-to-implement technology can help alleviate some of the pressures SMBs face.

While enhancing cybersecurity measures remains a critical priority, according to the World Economic Forum, the cyber resilience of many SMBs has fallen significantly (30%) in the last year, leaving them vulnerable to costly breaches and operational disruptions.

Attacks on SMBs are costly. Accenture found that 43% of all cyberattacks target SMBs, at an average cost of $25,000.

Flannery said, “Our research shows that budget and resource limitations are stopping many from making this much-needed investment.”

Cost, implementation challenges

SMB leaders identified cybersecurity as one of their most pressing challenges, respondents expressed concern for today’s economic conditions (42%), budget constraints/cost reductions (41%), recruiting and retaining skilled employees (30%), growth and expansion (36%), and modernizing outdated technology (27%).

Cybersecurity vendors targeting SMBs need to ensure that technology is affordable. Budget remains a significant constraint for two-thirds (66%) of SMBs looking to adopt new technology.

But cost isn’t the only barrier.

As technology continues to evolve, 40% of SMB owners are also concerned about their organizations' lack of technical expertise and training. They don’t just want to be aware of new technology and up to date with their installations—they want to know how to use the solutions they purchase effectively and maximize their value, making this a key add-on for business vendors to consider.

In 2025, the study found that while 59% of SMBs recognize cybersecurity and compliance as key priorities, there is a significant gap in investment, with only 49% prioritizing these areas for new technology spending.

Kinetic said this “highlights a critical disconnect between awareness and action, possibly driven by budgetary constraints or competing interests.”

Usability is also key. SMBs are looking for low-touch solutions, with only 36% interested in more advanced, hands-on, or AI-powered tools. This reflects a need for user-friendly, manageable options due to limited IT resources.

Service providers like Kinetic Business have addressed the SMB cost and implementation challenges for cybersecurity in its Business Ready Internet solution. The platform offers SMBs a cybersecurity package, high-speed internet access, compliance, and productivity-boosting technology for one low price.

Businesses like Inventor’s Network KY are already reaping the benefits of Kinetic’s platform. “As a company handling sensitive data, ensuring top-notch network security was paramount,” said Don Skaggs, president of Inventor’s Network KY. “The gigabit internet speeds have greatly enhanced our team's productivity, allowing for seamless collaboration and rapid data transfer.”

For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.