Small businesses are worryingly underprepared with little over a month to go before new data protection regulations are introduced.
The Federation of Small Businesses (FSB) recently claimed that 33% of SMEs have not started preparing for the new EU-wide General Data Protection Regulation (GDPR), which takes effect on 25 May 2018.
A similar number (35%) have only recently started preparing for it, with 52% of those approaching the Information Commissioner’s Office (ICO) for advice.
Only 8% of 934 small businesses polled by the FSB are ready to be fully compliant with the introduction of the GDPR.
It is estimated that in the UK the average SME spends seven hours a month and £508 a year complying with their data protection requirements, according to the FSB.
60% of small businesses have reported lower profits due to obliging with data protection, and 31% say they have been forced to stop workforce expansion.
Sanctions of £20 million or 4% of a business’s annual turnover, whichever is higher, are in place for non-compliance, although fines will only ever be applied as a last resort.
If you wish to find out more about GDPR and how it may impact upon your business please visit the ICO’s website.