The 2025 State of SMB Cybersecurity Report from CrowdStrike highlights a significant gap between small and medium-sized businesses (SMBs) and their cybersecurity preparedness. While a notable 83% of SMBs claim to have a plan in place, and 93% assert that they are informed about cybersecurity threats, only 36% are investing in new security tools. Alarmingly, a mere 11% have implemented AI-driven security solutions.

The report indicates that even with heightened awareness of cyber risks, many SMBs lack the necessary funding, resources, and expertise to effectively combat modern threats. Research shows that smaller organizations, particularly those with fewer than 50 employees, are struggling the most. Over half of these tiny firms allocate less than 1% of their annual budget to cybersecurity, and only 47% have a security strategy established.

Cost considerations heavily influence decision-making, but often in ways that undermine security efforts. Only 57% of SMBs prioritize defense against advanced threats, and while 67% deem cost a priority when selecting cybersecurity solutions, just 6.5% believe their current budget is adequate.

The influx of cybersecurity products presents further challenges, with nearly 70% of SMBs relying on external guidance for purchasing, and half feeling overwhelmed by their options. Ransomware remains a substantial concern, especially for smaller teams—29% of SMBs with fewer than 25 employees reported experiencing a cyber incident involving ransomware, compared to 19% of larger SMBs.

Conversely, the adoption of AI-driven security systems could present a viable pathway to enhanced safety for growth-oriented organizations. Currently, only 11% of SMBs have integrated AI-powered security, suggesting significant room for development.

Lisa Campbell, Vice President of SMB at CrowdStrike, remarked that while SMBs increasingly recognize the cyber risks they face, many remain vulnerable to contemporary threats. She noted that there is a strong desire for effective solutions that minimize complexity while being economical and efficient.

The findings underscore the essential need for SMBs to translate their cybersecurity awareness into actionable strategies and robust protections.

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