Small Businesses Are Y2K Vulnerable

While the banking industry in general appears well on its way to solving possible Year 2000 problems, some of their customers may not be. Small business appears very vulnerable to problems and a survey by the National Federation of Independent Business reveals that a substantial number have no plans to act unless something happens. The survey found that 40 percent of all small employers that may have exposure to Y2K problems have taken action. Another 19 percent plan to take action sometime this year. However, almost one-third of employers with equipment subject to Y2K difficulties have no plans to assess their risk and another five percent aren't even aware that there might be a problem!

Many small firms that depend on PCs to run their businesses are not vulnerable because their software is so new. Nine out of 10 firms reported that their most critical software is less than two years old and almost all (95 percent) reported that their critical software is less then five years old. It might be a good idea, loan officers, to have a chat with the small business owners in your portfolio.

Copyright © 1999 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 9, No. 2, 2/99