No BC Plans in 44% of Small Firms

Business continuity experts know it, but apparently not all small businesses do: 75% of small firms that sustain a disaster go out of business within five years. Yet according to a study by the insurance company Travelers, nearly 44 percent of small businesses operate with no continuity plan.

In an article on the Hartford Business website, Becky Bergman says the study polled 101 people at the U.S. Chamber of Commerce America’s Small Business Summit in May. “Thirty-nine percent believe they do not have the time or resources to identify and prepare for risks,” Bergman writes.

Ignoring risk is only acceptable for businesses that can go for hours, days or weeks without providing goods or services to customers, said Brian Barnier of ValueBridge Advisors. Otherwise, any outage would be a huge problem.

“All of us will experience human errors, equipment failures and power outages, said financial consultant Donna Childs, who founded RiskReady LLC. “The best approach is to prepare for the everyday disaster… it gradually builds resilience against more serious disasters.”

To read the Hartford Business article, click here:[]=Article$0@13837;Article&css_display=print