Too small to target? Think again: Startup & SME security risks

When most people imagine high-stakes security breaches, they picture multinationals, government infrastructure, or data-rich financial institutions. Rarely do they think of a five-person tech startup, a boutique shipping company, or a growing logistics SME.

That’s a problem. Because the threat actors certainly do.

Small and medium-sized enterprises (SMEs) and startups are increasingly becoming prime targets, not despite their size, but because of it. They often lack mature defences, formalised risk strategies, or the capacity to respond quickly. And most critically? Many still underestimate what they have that’s worth taking.

The myth of “We’re too small to matter”

If there’s one dangerous belief that circulates among startups and SMEs, it’s this: “We’re not a big enough fish for someone to target us.”

That line of thinking overlooks several facts:

• SMEs often serve as entry points to larger companies through supply chain access or digital integrations.

• Startups frequently hold proprietary IP, early-stage product data, or client lists attractive to competitors or cybercriminals.

• Threat actors know that smaller firms lack internal cybersecurity teams, dedicated risk officers, or hardened physical protocols.

  
  

The result? Easy targets. Fast wins. No headlines.

By the time a breach is detected, if it’s detected at all, the damage has been done.

Core challenges facing Startups & SMEs in security

Budget Constraints

Security doesn't come cheap. And when you're bootstrapping or chasing Series A funding, it can be hard to justify spending on “what ifs.”

• CCTV gets delayed in favour of marketing spend.

• Cyber insurance premiums get deprioritised behind staff salaries.

• Physical access controls are minimal, relying on trust instead of protocols.

  
  

But attackers aren’t waiting for your revenue to scale before they act. They’re looking for the gap between your ambition and your preparedness, and it’s often wide open.

Lack of Understanding

Founders and early staff often wear multiple hats. That’s expected. But it also means security strategy is rarely someone's primary job, and that’s where the danger creeps in.

• Data protection policies? Written last minute.

• Vendor access control? Loosely managed, if at all.

• Physical office security? A few locks, maybe a shared keycard.

  
  

Without expert input, even the most tech-savvy teams leave themselves vulnerable to oversight, assumption, or misconfiguration.

Delayed infrastructure & reactive planning

Startups are fast-moving by nature. But security often lags behind, treated like an afterthought.

• Offices get rented before they’re secure.

• Staff get hired before access control systems are in place.

• Cloud environments get spun up without standardisation, segmentation, or proper credential hygiene.

  
  

By the time a breach, loss, or incident occurs, it’s too late, and the response is usually reactive, not proactive.

High staff turnover and onboarding gaps

Startups tend to scale quickly and flexibly. But that speed often outpaces process.

• Temporary hires or freelancers may retain access after their contracts end.

• Former employees may walk away with credentials, files, or insider knowledge.

• New staff may never receive proper security onboarding, let alone ongoing training.

  
  

People are the biggest variable in any security strategy. And in high-churn environments, they’re also the biggest vulnerability.

Underestimated risk exposure

Most startups assume their value lies in their product. But from a security perspective, it often lies in their data, infrastructure access, or third-party integrations.

If your startup integrates with a larger platform, hosts a client database, or even prototypes new tech, you are on the radar, whether you know it or not.

And the reputational impact of a breach? For an SME or startup, it can be existential.

What can be done? A realistic approach for emerging businesses

Security for small businesses isn’t about bank-vault budgets or enterprise-level infrastructure. It’s about awareness, discipline, and structure, even if it’s basic.

Some key starting points:

• Start with a threat model: What do you have that’s worth stealing, breaking, or misusing?

• Segment access: Not everyone needs access to everything, digitally or physically.

• Train your people: Human error causes most breaches. Build security awareness into onboarding, not just the handbook.

• Secure the basics: MFA, endpoint protection, locked server rooms, password managers.

• Prepare a breach response: Even a one-page protocol beats panic.

  
  

Security doesn’t scale with your growth, it must be built in from the beginning.

Conclusion: Small teams, big targets

Security is no longer a luxury reserved for large corporations. It’s a foundational element of business survival, especially for the companies with the least margin for error.

If you're a startup or SME leader, it’s time to stop treating security as something you’ll “deal with later.”Later may come with a ransom note, a lost client, or a public breach.