Top 6 Future Threats Small Business Owners Are Afraid of

Life as a small business owner is far from cozy. A large proportion of small businesses fail within their first year - and this increases if you look at a small business’s first three years alive. Staying afloat is hard, especially when there are so many threats consuming the small business landscape.

In a recent report by the US Chamber of Commerce, small business owners revealed their biggest perceived threats in the coming months and years. Some of the results were expected, while others were shocking. We’ve taken the results of this report to break down the top six future threats small businesses are worried about in 2025 and beyond. We’ll work in reverse order, starting with:

6. Natural Disasters

As many as 39% of small businesses are worried about natural disasters causing problems for their companies. This has risen over the last few years due to problems like mass flooding and wildfires. It’s particularly apt given the recent LA wildfires, which caused over $160 billion in damages. This was a clear example of how a natural disaster can wipe out hundreds of small businesses within a few days. Many of the companies may never recover from this loss, and those that do will spend a long time dealing with the financial consequences.

Still - and this is a slight spoiler alert - 39% is close to half of the number of respondents worried about the number one threat on this list. As damaging as natural disasters can be for lots of small businesses, they’re not seen as a significant threat by the majority of companies. We think this is because many businesses operate remotely or are 100% online, meaning a natural disaster won’t have any bearing on their general operational infrastructure.

5. Theft

The fifth biggest threat for small businesses is theft. Around 42% of companies worry about this - again, it’s not that large, maybe because more and more small businesses don’t have physical premises.

Regardless, theft is clearly a big worry for some small companies, especially those operating in retail or offices. It’s shockingly easy for someone to break into a building, steal things from the company, and get out - particularly when you consider that most businesses close in the evenings, leaving the premises unmanned.

The good news is that 74% of small businesses believe they’re prepared to handle theft. There have been lots of great solutions over the years to deter bad operators and prevent burglaries. CCTV systems offer a major deterrent, though the biggest winner is an access control system. It’s the simplest way to protect your small business from theft by restricting who moves in and out of the building.

Of course, you also have security alarms in retail stores, along with all sorts of other security monitoring systems. Theft remains a significant concern, but there’s no denying it’s one of the easiest to prepare for and prevent.

4. Harsh Weather Conditions

45% of small business owners worry about the threat of harsh weather conditions. Specifically, we’re talking about inclement weather, which is defined as heavy rain or abnormal weather such as:

• Snow
• Extreme cold
• Hail
• High winds
• Dust storms
• Extreme heat

It seems like a strangely high percentage when you think about the impact of harsh weather conditions on businesses. They’re not quite natural disasters, so where does the fear come from? Perhaps it’s linked to number two on this list, supply chain breakdowns. Maybe businesses worry that extreme weather can interrupt their supply chain and cause a significant loss of business.

There’s also the possibility that outdoor businesses were surveyed. This could include businesses like gardening services, construction companies, roofers, and so on. When you think about how many small businesses fall into these categories, it starts making more sense. Lots of people depend on decent weather to physically provide their service - when this isn’t possible, they’ve got no way of making money.

3. Another Pandemic

Small business owners still have PTSD from the COVID-19 pandemic. It’s wild to think that was five years ago, and yet 54% of small businesses see another pandemic as their biggest threat. When you recall what the pandemic did to small companies, it’s easy to understand why so many business owners worry about another one.

Research found that small businesses were more likely to close forever during the pandemic than large businesses. It doesn’t take a genius to figure out why. Small businesses have less working capital, which means they can’t afford to spend a few weeks or months without gaining customers. Add to the fact the pandemic went on for far longer than anyone anticipated, and it was the perfect recipe for disaster.

Despite it being the third-biggest threat on this list, 67% of small businesses think they’re ready to handle another pandemic. The big advantage this time around is experience. Nobody was prepared for the previous pandemic because nothing like that had ever happened in our lifetime. It came as a shock - and it really emphasized the need for contingency plans across businesses of all sizes. The small businesses that survived the pandemic are ready to prevent another catastrophe from happening again.

What’s intriguing about this is the idea that small business owners genuinely worry about another pandemic. They don’t see what happened before as a complete freak event; they legitimately believe it could happen again. Thankfully, there are no signs of anything like that ever being a problem - and if there is another pandemic, governments should be better equipped to deal with it anyway.

2. Supply Chain Breakdowns

Supply chain issues are the biggest worry for 58% of small businesses. Of all the things on this list so far, this one makes the most sense. Of course a small business will worry about supply chain breakdowns because they’ve experienced it in the last few years already. Yes, we’re talking about the pandemic again! It devastated global supply chains and proved to small businesses just how dependent they were on suppliers.

Furthermore, the biggest worry with supply chains is the lack of control you have over things. You depend on other businesses to move things along - and some of your suppliers depend on their own suppliers! It creates this vast network where one small thing could happen on the other side of the world that completely obliterates your supply chain.

Unless you’re a massive corporation, it’s almost impossible to control all elements of your supply chain. That’s why so many small businesses worry about this - along with the fact that supply issues cause devastating financial losses. If you can’t restock your online store with products, then you literally can’t make any money. The longer a supply chain breakdown goes on, the more money you lose, and you still have no way of changing things.

When you take all of this into account, it makes perfect sense that only 61% of businesses are prepared for supply chain breakdowns. For context, that’s the lowest percentage on this list!

1. Cybersecurity Threats

You probably guessed this based on it not appearing already, but cybersecurity threats are the most concerning for 60% of small businesses. This is not surprising given that Statista estimates three in four US companies suffer a cyberattack each year. Cybersecurity threats are extremely worrisome because there are so many ways a business can be attacked.

With that in mind, the most common cyber threats are:

• Malware - It’s becoming increasingly easy for hackers to install malicious software on devices or networks. Malware can then disrupt general business operations, take down systems, or straight up steal data.
• Phishing - This normally stems from employee negligence and highlights the importance of secure data sharing in modern businesses. Phishing attacks happen when someone unwillingly shares private information with a cyber-criminal. They could click on a link in an email and grant the criminal access to their computer network. These attacks are so easy to fall for and can result in malware being installed on your business network.
• Ransomware - Hackers will break into your network and hold it ransom. They threaten to leak private business documents to the world or will sell your customer’s data. The only way you can reclaim access to your network/data is by paying a ransom fee.

You also have DDoS attacks, man-in-the-middle attacks, and issues stemming from insider cybersecurity threats. Businesses are starting to realize the importance of stellar cybersecurity systems, and you should follow suit.

The interesting thing about cyber threats is that they can cause supply chain breakdowns. If your business is hacked, and the hackers leak your supplier’s private data, this can make your supplier cut off their contract with you. Or, they could suffer a cybersecurity breach and be unable to fulfill your orders.

There’s no denying that cybersecurity issues are the biggest threat to modern small businesses, but it’s fascinating to see the other things on this list. If you run a small company, what would your biggest threat be? Is it one of the six options listed above, or do you see a bigger threat on the horizon? Regardless, you should always plan for the worst and create plans to deal with your biggest threats.