BOSTON – Most small businesses recognize the impact data loss could have on their business. But more than half (57 percent) do not have a disaster preparedness plan for business data, according to new research from Carbonite, which makes online backup solutions for both consumers and small to medium businesses.
The Carbonite study is based on a survey of 130 small business owners in August 2011. The survey indicated that 81 percent of small businesses consider data to be their organization’s most valuable asset. Small businesses ranked the permanent loss of data as the No. 1 challenge to maintaining their business in the event of a natural disaster even more devastating than the loss of the physical location or of products and materials.
“With the recent hurricanes, tornados, fires and even earthquakes that have so significantly impacted people across the nation, disaster preparedness is top of mind,” said Peter Lamson, senior vice president and general manager of small business for Carbonite.
The problem is that despite this recognition, most small businesses still aren’t actually doing anything to protect themselves against disaster.
“Small businesses recognize the value of protecting their business data and assets, -but most are not adequately prepared for a data disaster,” Lamson said.
While small business owners understand the direct link between protecting their data and keeping their business running, the study revealed several reasons why the majority of small businesses have nonetheless neglected to develop a disaster preparedness plan.
The top reason businesses have not created a disaster preparedness plan is they simply “haven’t thought about it” (59 percent). Most also think a disaster can’t happen to their company. Only 13% think a data disaster could happen and 54 percent believed any occurring data disaster was unlikely to impact their business.
In addition, most thought their particular business can withstand disaster. Only 69 percent believe they will lose money if their business could not function for even just one day;
Some think it costs too much to have a preparedness plan. 20 percent said cost factors into their lack of planning, noting they either do not have money or that costs of planning for a data disaster are unpredictable.
“The fact that FEMA has stated that 40 to 60 percent of small businesses never re-open after a data disaster suggests that small business owners need to pay attention to the risk and to prepare accordingly,” said Lamson. “Small businesses that plan ahead and take key steps like protecting their valuable business data will be in a much better position to get their business back up and running if a disaster strikes.”
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