News

1. Introduction

Why digital security is vital for SMEs [1] [2]

The gap in cybersecurity between large and small organizations is growing every year. 35% of small organisations see their cyber resilience as insufficient, which is true for only 7% of large organisations.

71% of cyber leaders agree that small organisations have already reached the limit of their ability to protect themselves against modern, complex cyber risks.

Around half of small businesses have no cybersecurity measures in place, and 59% of small business owners without such measures believe their business is too small to be targeted. 

Statistics on credential management in SMEs [2] [3]

Around 40% of SMEs that have adopted cybersecurity measures have implemented password management tools.

20% of small businesses have implemented multi-factor authentication. 

According to various studies, 40–60% of SME breaches involve weak passwords or compromised credentials.

78% of small businesses that have experienced a breach attribute it to weak or stolen passwords.

The situation is worsened by the fact that only slightly more than 30% of people use password managers, which complicates adoption within companies since employees are unfamiliar with the technology. Furthermore, user habits such as reusing passwords for personal and work accounts contribute to the problem, with around 50% of users reusing passwords for both personal and work accounts and approximately 70% reusing passwords in general.

2. The scope of the problem

Common credential management mistakes in SMEs:

• Lack of training for employees: Without training, employees will manage corporate passwords according to their own ideas. Even if a company has a business password manager, employees may continue to use poor practices or use the tool ineffectively without training.
• Using weak or reused passwords: This problem persists as long as employees manage passwords and access data manually. 
• Lack of password policy or failure to enforce it: Before dictating password management rules to employees, these rules must first be established. There should be no exceptions, absolutely everyone, regardless of their job title, must follow them.
• Absence of 2FA/MFA (two- or multi-factor authentication): This is now standard practice. Where possible, passwordless access options are worth considering, but for password access, a second or multifactor is necessary.
• No accountability or traceability for shared logins: Without control over who is sharing access data, many employees will have access to accounts/services that are not needed for their work, as well as an inappropriately high level of access (e.g. admin access instead of viewer access).

Decentralised password storage can also increase technical support response times due to more frequent login problems caused by forgotten passwords, password changes by other employees, or the enabling of 2FA.

 Why SMEs struggle more than enterprises:

• Limited IT resources or personnel
• No formalised security training or documentation
• Сost and complexity of enterprise tools

3. What makes a good business password manager?

• Granular password sharing (only the credentials the employee needs to work)
• Role-based access control
• Availability on multiple platforms (web, mobile, desktop and offline) with control over them
• User activity log and history
• Extensive security settings, such as password complexity requirements, automations, data retention, 2FA and various access controls, as well as export/import
• Integration with existing corporate systems (e.g., Microsoft Azure/Entra ID, LDAP and SAP)
• Reliable and secure hosting 

Our PassSecurium™ password manager for businesses offers all of the above and more!

4. The benefits of using a password manager for business

• Enhanced security
• Centralised credential storage and secure sharing
• Strong security policy enforcement
• Increased productivity with autofill and single sign-on (SSO)
• Simplified employee onboarding/offboarding
• Storing additional forms of data: bank accounts and credit cards, email settings, licences, IDs and server access.
• Regulatory compliance (GDPR, FADP, ISO 27001)

 5. Choosing the right solution for your SME

Here is a comprehensive checklist of key questions to help you make the right decision:

Security & compliance

1. Is end-to-end encryption used? Are passwords encrypted locally before leaving the device?

2. Where is the data stored?

3. Does the solution support two-factor authentication (2FA) or multi-factor (MFA) authentication?

4. Is the solution compliant with relevant regulations, such as GDPR, FADP and ISO 27001?

5. Can we control and audit access? Are there logs of who accessed what and when?

User & access management

6. Can users and groups be managed easily? Is there role-based access control (RBAC)?

7. Is the onboarding/offboarding process for employees straightforward? How quickly can access be granted or revoked?

8. Can credentials be shared securely between team members or departments?

9. Is there integration with SSO or directory services?

Functionality & usability

10. Is the interface user-friendly and intuitive? Will employees find it easy to adopt?

11. Does it work across all platforms and browsers? Is there a browser extension? Are there mobile apps? Desktop versions?

12. Can it store more than just passwords? For example, attached files, credit card data and one-time passwords (TOTP).

Scalability & support

13. Will it scale with our company?

14. What kind of customer support is available?

15. Are updates and new features included in the licence?

Cost & licensing

16. What pricing options are available for SMEs? Are there volume discounts?

17. Are there any hidden costs? For example, fees for extra users, cloud storage, or integrations?

18. Is there a free trial or live demo?

Audit & reporting

19. Can we generate security reports? E.g., password strength analysis, reuse reports, breached passwords and activity logs.

20. Are there notifications about various events inside the password manager?

6. What do our business customers think about the PassSecurium™ password manager?

Implementing a password manager for business is always a carefully considered step, so companies have certain expectations that they want to be met after purchase. Read reviews from our customers about their experience with PassSecurium™ here.

7. Conclusion

Insecure and careless password management is a surefire way to severe cybersecurity incidents that can dramatically impact your business and its reputation. To continue in this way is virtually reckless when affordable and scalable password management solutions for businesses are available. Moreover, SMEs now have a wide range of password managers to choose from.

Are you ready to take control of your team’s digital security? Find out how a business-dedicated password manager like PassSecurium™ can help keep your SME secure and efficient – arrange a free demo or trial today!

Sources: 

[1] WEF Global Cybersecurity Outlook 2025

[2] https://www.strongdm.com/blog/small-business-cyber-security-statistics 

[3] https://gitnux.org/password-hacking-statistics/

[4] https://www.security.org/digital-safety/password-manager-annual-report/