Why Small Businesses Can't Afford to Skip a Cybersecurity Leader (And How to Get One)

Cyberattacks on small and medium-sized businesses (SMBs) now average over $250,000 in costs, according to the 2026 CISO Report by Sophos and Cybersecurity Ventures. Meanwhile, the salary for a chief information security officer (CISO) ranges from $250,000 to $400,000 annually—making it financially unrealistic for most SMBs to hire one full-time.

Facing this dilemma, many SMBs take a risky approach: they gamble on avoiding attacks altogether. But as the American economy grows increasingly digital, SMBs now rely on the same critical infrastructure as large enterprises—cloud services, payment systems, remote access, customer data, and third-party vendors. Without dedicated cybersecurity leadership, security often becomes a fragmented mix of tools, checklists, insurance paperwork, and vendor-driven guidance. While this may satisfy compliance questionnaires, it does not build real resilience.

Nearly half of all reported cyber incidents involve smaller firms, according to recent data. The global economic impact of cybercrime is projected to reach $12.2 trillion annually by 2031. The threat is escalating in both scale and sophistication, with adversaries leveraging AI to automate reconnaissance, malware development, and phishing campaigns, making it easier and cheaper to target SMBs at volume.

Another growing concern is the collection of encrypted data by attackers, which they intend to decrypt once quantum computing becomes sufficiently advanced. Many SMBs in defense, healthcare, and financial supply chains hold sensitive credentials that provide access to larger enterprise networks, yet most are unprepared to adopt quantum-resistant encryption.

SMBs recognize the cyber risks they face, but the real gap lies in leadership. What they need is someone who can translate technical vulnerabilities into business decisions, set priorities, brief executives, prepare for audits, and hold vendors accountable.

Why Full-Time CISOs Are Out of Reach for Most SMBs

For the vast majority of small businesses, hiring a full-time CISO is not financially viable. The solution? A virtual CISO (vCISO) or fractional CISO (fCISO).

A vCISO provides remote, on-demand cybersecurity leadership and advisory services, typically supporting multiple organizations simultaneously. This model offers flexibility and cost efficiency while delivering senior-level expertise.

A fractional CISO, on the other hand, is a dedicated, part-time executive who integrates more deeply into an organization’s governance, security planning, and daily operations. Both models enable smaller businesses to access high-level cybersecurity leadership without the burden of a full-time salary.

How Government Can Help Bridge the Cybersecurity Leadership Gap

The private market alone is not closing the cybersecurity leadership gap for SMBs. To address this, Washington should take action to make it easier for small businesses to hire fractional cybersecurity leaders.

Agencies like the Cybersecurity and Infrastructure Security Agency (CISA) and the Small Business Administration (SBA) can play a pivotal role by publishing clear buyer guidance. This guidance should include:

• Vetted criteria for evaluating vCISO or fCISO providers
• Example scopes of work and deliverables
• Real-world case studies demonstrating high-quality engagements

Clear guidance is essential because many SMBs struggle to distinguish between true cybersecurity leadership and other service providers—such as tool resellers, compliance-only consultants, or generic managed services vendors.

Any vetted provider criteria should prioritize:

• Proven experience building and running security programs
• Independence from vendor incentives and product quotas
• Transparency in methodologies and outcomes