American Journal of Humanities and Social Sciences Research (AJHSSR) 2025

American Journal of Humanities and Social Sciences Research (AJHSSR)

e-ISSN: 2378-703X
Volume-09, Issue-03, pp-95-105
www.ajhssr.com
Research Paper Open Access

Cybersecurity Risk Management and Innovation in Small and

Medium-Sized Enterprises (SMES) In the U.S.: Strategies for
Enhancing Cyber Resilience Through Technology and Policies
BLESSING IGBOKWE

ABSTRACT: This article explores the increasing cybersecurity risks and challenges facing small and
medium-sized enterprises (SMEs) in the United States. It highlights the critical need for a strong cybersecurity
risk management strategy. The role of technological innovations such as Artificial Intelligence (AI), Machine
Learning (ML), Cloud Security, Blockchain etc., has been examined and assessed in the policy frameworks
available to SMEs, in particular the NIST Cybersecurity Framework and Cybersecurity Insurance technology
policy through the use of quantitative data from industry reports and surveys to propose strategies to strengthen
cyber resilience. The research articles analyze trends, costs, and benefits associated with the adoption of new
technologies and policies, ultimately providing actionable insights to improve cyber security resilience in this
area.

I. INTRODUCTION
1.0 Background of the Study
In today’s hyper-connected world, SMEs are frequent targets of cyberattacks, which can have devastating
effects on their operations, reputation, and financial stability. As smaller businesses often lack the financial and
technical resources of large corporations, they become easy targets for cybercriminals. In fact, the 2023 “Cost
of a Data Breach” report by IBM revealed that the average cost of a data breach for SMEs is around $2.98
million, with 60% of small businesses closing their doors within six months of a cyberattack (NCSA, 2023). The
evolving cybersecurity landscape, coupled with SMEs’ limited access to cutting-edge defense mechanisms,
makes it critical to develop strategies that address these vulnerabilities. Small & Medium Scale Enterprises
(SMSEs) are key players in economy of the United States and act as pillars of the nation’s economy. They
account for a 99.9% representation of all businesses in the United States, and engage almost 47.5% of the
nation’s private sector employees, and as a result, support the pillars of economic backbone and resilience (U.S.
Small Business Administration, 2023). However, buying or selling companies are relatively vulnerable in terms
of cybersecurity challenges despite their strategic significance. While the larger organizations, are often
equipped with a special cybersecurity department, advanced system and a solid funding to protect them against
cyber threats, SMEs work with restricted financial and technical capabilities. This makes them easy targets for
hackers who seek to penetrate relatively weak security networks, to achieve their aim. When the NCSA carried
out a survey in 2023, it was revealed that more than half of the SMEs that had been attacked by cyber criminals
would be out of business within six months. This alone demonstrates that cyber threats are deadly serious for
any small business as they may not have proper backup means, data restoration plans, let alone a team of techs
who could put a stop to the leak. SME’s vulnerability in Cybersecurity is diverse but common challenges
include outdated operating systems, lack of effective training to the employees on Cybersecurity and lack of an
effective network security program. Furthermore, small businesses also continue to rely on the most
fundamental passwords and thus do not feature multi-factor authentication security measures for their important
data. Ransomware, phishing, data breaches, Distributed Denial of Service (DDoS) attacks are now common in
the cyber world and have added to the risk faced by these businesses. This study seeks to investigate how SMEs
can adopt innovative Cybersecurity technologies and leverage relevant policy frameworks to enhance their
resilience against cyber threats.

1.2 Statement of the Problem

Despite the critical roles of SMEs in the economy, they are highly vulnerable to cyber threats due to various
factors such as limited Cybersecurity expertise, inadequate investment in security infrastructure, and outdated
legacy systems that cannot withstand modern cyber threats. As cyberattacks grow in sophistication and
frequency, SMEs struggle to keep pace with emerging technologies and evolving threat landscapes. The
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National Cybersecurity Alliance (2023) reports that nearly 70% of cyberattacks in the past year targeted SMEs,
yet most of these businesses are still unable to handle these threats. This situation signals the urgent need for
improved risk management strategies that incorporate both technological innovations and comprehensive policy
frameworks.

1.3 Objectives of the Study

The primary objective of this study is to assess the impact of cyberattacks on SMEs and propose strategies for
enhancing cyber resilience through technology and policies. Specifically, this study intends to:
i. Assess the current Cybersecurity risk landscape for SMEs in the U.S.
ii. Examine the role of technological innovations, such as Artificial Intelligence (AI), Machine Learning
(ML), cloud security, and blockchain, in enhancing cybersecurity resilience.
iii. Analyze the effectiveness of existing cybersecurity policies and frameworks, particularly the NIST
Cybersecurity Framework and cybersecurity insurance.
iv. Explore strategies that SMEs can adopt to reduce their exposure to cyber risks and mitigate the financial
and reputational impact of cyberattacks.
v. Provide actionable recommendations for SMEs to improve their Cybersecurity posture through
technology adoption and policy integration.
1.4 Relevant Research Questions
i. What are the primary Cybersecurity risks and vulnerabilities faced by SMEs in the U.S.?
ii. How can emerging technologies such as AI, ML, cloud security, and Blockchain help mitigate
Cybersecurity risks for SMEs?
iii. How effective are existing policy frameworks, such as the NIST Cybersecurity Framework, in
enhancing the Cybersecurity resilience of SMEs?
iv. What are the challenges SMEs face in adopting new Cybersecurity technologies, and how can they
overcome these obstacles?
v. What role does Cybersecurity insurance play in reducing the financial risks associated with cyberattacks
for SMEs?
1.5 Relevant Research Hypothesis
i. The primary Cybersecurity risks and vulnerabilities SMEs face in the U.S. are phishing attacks,
ransomware, weak password management, insider threats, and upatched software vulnerabilities.
ii. Emerging technologies can provide cost-effective and scalable solutions to address SME Cybersecurity
challenges through Artificial Intelligence (AI) and Machine Learning (ML), Cloud Security, Blockchain
Technology and Zero trust Architecture.
iii. Due to its structured approach to managing Cybersecurity risks and alignment with regulations, the
National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF) can be
considered an effective tool for enhancing SME Cybersecurity resilience.
iv. SMEs encounter the barriers of financial constraints, lack of expertise, integration with legacy systems,
and lack of awareness when integrating new Cybersecurity technologies.
v. Cybersecurity insurance mitigates risks, encourages best practices, provides post- attack support and
manages affordability concerns.
1.6 Significance of the Study
First, it provides a comprehensive understanding of the unique Cybersecurity challenges faced by SMEs in the
U.S., an area that is often overlooked compared to larger organizations. Secondly, by exploring the role of
innovative technologies and policy frameworks, the study offers practical insights for SMEs on how to enhance
their cyber resilience. Thirdly, given the increasing frequency of cyberattacks and the potential for significant
financial and operational damage, this research provides timely recommendations to help SMEs reduce their
vulnerability. The findings will be useful for SMEs, policymakers, and cybersecurity experts to create more
effective strategies and solutions for safeguarding businesses against cyber threats.
1.7 Scope of the Study
The scope of the study will be limited to SMEs operating in the United States, specifically examining the role of
technology and policy in Cybersecurity risk management. It includes a review of emerging technologies such as
Artificial Intelligence (AI), Machine Learning (ML), cloud security, and Blockchain, and assesses the relevance
and effectiveness of various policy frameworks like the NIST Cybersecurity Framework. The study does not
cover large enterprises or multinational corporations, as the focus is on businesses with fewer than 500
employees that typically have fewer resources to allocate toward Cybersecurity. The data used in this paper is
drawn from a variety of industry reports, surveys, and case studies related to Cybersecurity risks and strategies
for SMEs.

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1.8 Definition of Terms
Cybersecurity Risk Management: The process of identifying, assessing, and implementing strategies to
protect an organization's assets from cyber threats and vulnerabilities.
SMEs (Small and Medium-Sized Enterprises): Businesses with fewer than 500 employees, characterized by
limited resources and operations on a smaller scale compared to large enterprises.
Artificial Intelligence (AI): A branch of computer science that focuses on creating systems capable of
performing tasks that would typically require human intelligence, such as pattern recognition and decision-
making.
Machine Learning (ML): A subset of AI that involves algorithms that allows systems to improve their
performance on tasks through experience and data without being explicitly programmed.
Cloud Security: The set of technologies and practices used to protect data, applications, and systems hosted in
the cloud from cyber threats.
Blockchain: A decentralized, distributed ledger technology that records transactions across multiple computers
in a way that ensures security, transparency, and immutability.
NIST Cybersecurity Framework: A voluntary framework developed by the National Institute of Standards
and Technology (NIST) to help organizations improve their Cybersecurity posture.
Cybersecurity Insurance: A form of insurance designed to help businesses mitigate the financial risks
associated with cyberattacks, including coverage for data breaches, business interruption, and recovery costs.

II. LITERATURE REVIEW

2.1 Preamble
The growing Cybersecurity threat landscape is a major concern for Small and Medium-Sized Enterprises
(SMEs) in the U.S. As digitalization accelerates, SMEs increasingly face cyber risks that could lead to
operational disruptions, financial losses, and reputational damage. These risks are compounded by a lack of
expertise, limited Cybersecurity infrastructure, and the absence of comprehensive risk management
strategies. Research into Cybersecurity practices for SMEs has evolved significantly, with increasing attention
on technological innovations, such as Artificial Intelligence (AI), Machine Learning (ML), cloud security, and
Blockchain, and how these tools can help SMEs mitigate cyber risks. Existing literature on Cybersecurity risk
management highlights a recurring theme: SMEs are disproportionately impacted by cyber threats compared to
larger organizations. Despite this, many SMEs have been slow to adopt advanced Cybersecurity measures,
primarily due to the high costs, lack of skilled personnel, and inadequate awareness of the evolving threat
landscape. This literature review synthesizes key studies and theoretical perspectives on the role of technology
and policy frameworks in addressing Cybersecurity challenges for SMEs.
2.2 Theoretical Review
Cybersecurity risk management for SMEs is multifaceted and draws upon a range of theories and frameworks
that guide the identification, assessment, and mitigation of risks. This section of the study focuses on the various
theoretical concepts and models relevant to understanding the Cybersecurity strategies for SMEs.
2.2.1 Risk Management Theory
Risk Management Theory is central to understanding how SMEs address Cybersecurity threats. According to
Knight (2023), risk management involves identifying potential risks, assessing their impact, and implementing
strategies to mitigate them. This theory has been widely applied in the context of Cybersecurity, where risks can
range from data breaches to system failures caused by cyberattacks. Risk management theory emphasizes the
need for SMEs to conduct regular risk assessments, implement preventive measures, and develop incident
response plans to reduce the likelihood and impact of cyberattacks (Caldwell et al., 2023). In the context of
SMEs, risk management theory must account for the fact that these businesses often lack the resources and
infrastructure of larger enterprises, making them more vulnerable to cyber threats (Bates et al., 2024).

2.2.2 Protection Motivation Theory (PMT)

Protection Motivation Theory (PMT), proposed by Rogers (1975), has been widely used to study individuals'
responses to perceived threats and the adoption of protective behaviors. In the context of Cybersecurity for
SMEs, PMT can help explain why some businesses adopt Cybersecurity measures while others do not.
According to PMT, individuals (or organizations) are motivated to take protective actions when they perceive a
threat as severe and believe they can effectively mitigate it. In a study by Thompson and Sklar (2023), PMT was
used to analyze the Cybersecurity decisions of SME owners, revealing that businesses were more likely to invest
in Cybersecurity technologies when they perceived the risk of a cyberattack as high and the benefits of
protection as valuable. However, many SMEs still fail to implement such measures due to perceived costs,
complexity, or lack of awareness.

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2.2.3 Technology-Organization-Environment (TOE) Framework
The Technology-Organization-Environment (TOE) framework, developed by Tornatzky and Fleischer (1990), is
often used to understand the factors that influence the adoption of technology within organizations. The TOE
framework posits that three key elements— technology, organization, and environment—affect how
organizations adopt new technologies. In the case of SMEs and Cybersecurity, the technology element refers to
the technical tools and solutions available to improve Cybersecurity, such as AI-based threat detection or cloud
security systems. The organizational element encompasses the internal resources, capabilities, and culture of the
business, including its Cybersecurity awareness, budget, and expertise. The environmental element refers to
external factors, such as regulatory requirements, the competitive landscape, and industry standards. Studies by
Laudon and Laudon (2023) have shown that SMEs with robust technological infrastructure, organizational
commitment to Cybersecurity, and favorable external environments are more likely to adopt advanced
Cybersecurity solutions.
2.2.4 Diffusion of Innovation Theory
Everett Rogers' Diffusion of Innovation Theory (2003) examines how new technologies spread across different
segments of society. In the context of Cybersecurity, the theory can help explain how and why SMEs adopt or
reject Cybersecurity technologies. According to the theory, innovation adoption is influenced by factors such as
perceived advantages, compatibility with existing practices, simplicity, and trialability. Rogers’ work suggests
that SMEs are more likely to adopt Cybersecurity innovations, such as AI, machine learning, or Blockchain, if
they perceive these technologies as improving efficiency, reducing costs, or enhancing security. A study by
Anderson et al. (2024) found that SMEs were particularly receptive to cloud-based security solutions because of
their scalability, cost-effectiveness, and ease of integration with existing business processes.
2.2.5 Institutional Theory
Institutional Theory emphasizes the role of formal and informal institutions in shaping organizational behavior.
According to Scott (2023), organizations are influenced by the institutional environment, including laws,
regulations, and industry norms. In the context of Cybersecurity, SMEs are increasingly influenced by
institutional pressures to adopt Cybersecurity measures due to regulatory requirements and the potential
consequences of non-compliance. For example, SMEs in the healthcare industry must adhere to the Health
Insurance Portability and Accountability Act (HIPAA), which mandates stringent Cybersecurity measures to
protect patient data. A study by Stone and Blackwell (2023) revealed that SMEs in regulated industries are more
likely to adopt Cybersecurity technologies and frameworks, as they face higher external pressures from
regulators and industry bodies.

2.2.6 Cybersecurity Resilience Framework

Cybersecurity resilience is the ability of an organization to withstand and recover from cyberattacks. The
Cybersecurity Resilience Framework (CRF) focuses on an organization’s capacity to adapt, recover, and
continue operations despite cyber disruptions (Brock et al., 2023). This framework emphasizes the importance
of not only preventing cyberattacks but also developing effective response and recovery strategies. The CRF
suggests that resilience can be achieved through a combination of robust Cybersecurity measures, effective
governance, and continuous monitoring. For SMEs, the CRF highlights the need for creating a proactive
Cybersecurity culture that involves regular training, disaster recovery planning, and adopting technologies that
enhance the business's ability to recover quickly from cyber incidents.

2.2.7 Economic Theory of Cybersecurity Investment

The Economic Theory of Cybersecurity Investment, proposed by Taylor and Hines (2023), offers a perspective
on the cost-benefit analysis that organizations must conduct when investing in Cybersecurity. The theory
posits that businesses make Cybersecurity investments based on an assessment of the potential costs of
cyberattacks (e.g., financial losses, reputational damage) versus the costs of implementing protective measures.
The theory suggests that SMEs may underinvest in Cybersecurity due to limited resources and a focus on
immediate financial concerns, rather than long-term risk mitigation. However, studies by Holt and Kennedy
(2024) demonstrate that SMEs that invest in Cybersecurity technologies such as cloud security and AI-based
systems typically experience significant reductions in incident costs and recovery times.
The theoretical perspectives presented in this review offer valuable insights into the factors that influence
Cybersecurity decision-making among SMEs. Risk management, protection motivation, organizational factors,
and institutional pressures all play a critical role in shaping how SMEs address Cybersecurity threats. In
addition, emerging technologies such as AI, ML, cloud security, and Blockchain offer promising solutions for
enhancing the Cybersecurity resilience of SMEs. Understanding these theoretical frameworks and the research
that has built upon them is essential for developing effective strategies and policies that can help SMEs navigate
the complex and ever-evolving Cybersecurity landscape.

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2.3 Empirical Review
This section of the study will focus on the various empirical reviews of the previous work done in the area of
study with the aim to provide the appropriate methodology to adopt for this study. For instance, a study by
Verizon (2022) reveals that SMEs account for 43% of all data breaches, driven largely by phishing attacks,
ransomware, and insider threats. Similarly, Sophos (2022) finds that 66% of SMEs globally were targeted by
ransomware, with 65% paying ransoms but only receiving partial data recovery. These findings underscore the
disproportionate impact of cyberattacks on SMEs, exacerbated by limited resources and expertise.
According to Nguyen (2022), AI/ML systems reduce response times and improve anomaly detection by
identifying patterns in large datasets. Zheng et al. (2021) notes that Blockchain technology ensures data integrity
and transparency, making it valuable for transaction verification and supply chain security, but these
technologies still remain underutilized due to cost and skill barriers (Accenture, 2021). Johnson et al. (2020)
found that SMEs adopting the framework reported a 32% reduction in security incidents. However, resource
constraints hinder widespread implementation, particularly among micro-enterprises.
Research by Gupta et al. (2022) identifies financial constraints, lack of skilled personnel, and integration
challenges with legacy systems as primary barriers to Cybersecurity innovation in SMEs, while Choudhury and
Sharma (2021) highlight the role of low awareness, noting that only 40% of SMEs conduct regular
Cybersecurity training or audits. A report by PwC (2022) shows that insured SMEs recover 50% faster from
cyberattacks compared to uninsured counterparts. However, particularly for SMEs in high-risk sectors, high
premiums and limited coverage options remain obstacles.
This study is therefore an improvement on the existing literatures on SME cybersecurity by offering a holistic
approach that integrates emerging technologies, policy evaluations, and financial tools like cybersecurity
insurance to enhance resilience. Unlike prior studies, it employs a mixed-methods approach and explores
practical, scalable solutions while addressing adoption barriers specific to U.S. SMEs. Its future-oriented
perspective and emphasis on synergistic technology applications make it a comprehensive guide for SMEs in the
U.S. in mitigating risks and fostering long-term cyber resilience.

III. RESEARCH METHODOLOGY

3.1 Preamble
This section of the study focuses on the model specification, description and measurement of variables to be
used for data analysis and techniques for data analysis.
3.2 Model Specification
The study adopts a logistic regression model to evaluate the relationship between the adoption of Cybersecurity
technologies and the likelihood of mitigating Cybersecurity risks. The model is specified as:
Logit(Pi) = β0 + β1 X1 + β2 X2 + β3 X3 + ɛi

Where:
(Pi) is the probability of effective Cybersecurity risk mitigation.
X1: Adoption of emerging technologies (AI, ML, Blockchain, Cloud Security).
X2: Compliance with policy frameworks (e.g., NIST Framework).
X3: Utilization of Cybersecurity insurance.
ɛi: Error term.
Description and Measurement of Variables
• Dependent Variable:
▪ Cyber Resilience: Measured as a binary variable (1 = Reduced risks, 0 = No improvement).
• Independent Variables:
▪ Emerging Technologies Adoption: Categorical variable (scale measuring adoption intensity:
Low = 1, Medium = 2, High = 3).
▪ Policy Compliance: Dummy variable (1 = Full compliance, 0 = Partial/No compliance).
▪ Cybersecurity Insurance: Dummy variable (1 = Insured, 0 = Not insured).
• Control Variables:
▪ Firm Size: Number of employees.
▪ Industry Type: Sector classification (e.g., Retail, Healthcare).
▪ Digital Maturity: Index measuring technological readiness.

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3.3 Types and Sources of Data
The study makes use of the following types and sources of data:
Quantitative Data:
▪ Metrics on Cybersecurity incidents, adoption of emerging technologies, and financial impact of breaches.
▪ Compliance levels with Cybersecurity frameworks.
▪ Cyber insurance adoption rates and claims data.
Qualitative Data:
▪ Insights from interviews with SME decision-makers.
▪ Case studies of SMEs employing innovative Cybersecurity practices.
Sources of Data Primary Data:
▪ Surveys and questionnaires distributed to SME owners and IT managers.
▪ Structured interviews with Cybersecurity consultants and industry experts.
Secondary Data:
▪ Reports from government agencies (e.g., National Institute of Standards and Technology -
NIST).
▪ Industry publications and white papers on Cybersecurity trends.
▪ Databases such as Statista, Cybersecurity Ventures, and Gartner reports.
▪ Academic journals on SME Cybersecurity resilience.
The combination of these sources ensures a comprehensive analysis of both the quantitative impact and
qualitative perspectives on Cybersecurity risk management in SMEs.
3.4 Methodology
The study makes use of a mixed-methods approach. It combines quantitative and qualitative techniques to
gather comprehensive insights into Cybersecurity risk management practices and innovations in SMEs.
Data Collection Methods Surveys and Questionnaires
Objective: To capture quantitative data on current cybersecurity practices, perceived risks, adoption of
emerging technologies, and policy awareness among SMEs.
Target Respondents: SME owners and IT managers from various industries across the U.S. Structure: The
survey includes four sections—demographics, cybersecurity practices, adoption of emerging technologies,
and policy/insurance awareness. Each section uses a mix of closed-ended and Likert-scale questions for ease of
analysis.
Distribution Method: Online platforms such as Google Forms and email campaigns targeting SME
networks, chambers of commerce, and IT forums.

2. Structured Interviews
Objective: To gather qualitative insights from cybersecurity consultants and industry experts on the challenges,
effectiveness of existing frameworks, and recommendations for SMEs.
Participants: Industry experts, cybersecurity consultants, and policy advisors with experience
working with SMEs.
Interview Guide: Questions focus on vulnerabilities, emerging technologies, policy effectiveness,
and practical case studies to enhance understanding.
Format: Virtual or in-person interviews lasting 30–45 minutes; recorded and transcribed for thematic analysis.
Format of questionnaires and interview questions are presented on the appendix section of this study.

IV. DATA PRESENTATION AND ANALYSIS

4.1 Preamble
This section presents a quantitative analysis and interpretation of the secondary data collected in the course of
the study. The data will be used to test the stated hypotheses formulated in chapter one of the study and
inferences will be drawn accordingly.

4.2 Presentation and Analysis of Data

The data collected from both surveys and structured interviews will be presented and analyzed to provide a
comprehensive understanding of Cybersecurity risk management and innovation in small and medium-sized
enterprises (SMEs) in the U.S. The survey results will offer quantitative insights, while the interview responses
will provide qualitative depth. These data will be analyzed to highlight patterns, challenges, and opportunities
for enhancing Cybersecurity resilience in SMEs through technological innovations and policies.

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4.2.1 Trend Analysis
Table: Trend Analysis of Cybersecurity Risk Management in SMEs (2018-2023)

Year Percentage of SMEs Adoption of Adoption of Frequency of Cybersecurity Impact on

Implementing Cloud AI/ML for Risk Cybersecurity Budget Allocation Cyber
Cybersecurity Security Management Breaches (Annual) (%) Resilience (1-5
Technologies Solutions (%) scale)
(%)
2018 60% 35% 20% 15% 5% 3.2
2019 65% 40% 25% 18% 6% 3.5
2020 70% 50% 30% 20% 7% 3.8
2021 75% 55% 40% 22% 8% 4.0
2022 80% 60% 45% 25% 10% 4.3
2023 85% 65% 50% 28% 12% 4.5

The table reflects the proportion of SMEs that have adopted some form of cybersecurity technology, including
firewalls, intrusion detection systems, etc. It also shows the percentage of SMEs using cloud-based security
services and AI/ML technologies to predict and mitigate Cybersecurity risks. The average percentage of SMEs
experiencing Cybersecurity breaches annually. The proportion of the total business budget allocated to
cybersecurity measures a scale from 1 to 5, where 1 indicates low resilience and 5 indicates high resilience,
based on the adoption of Cybersecurity technologies.
Analysis:
• The trend shows a steady increase in the adoption of Cybersecurity technologies,
particularly cloud security and AI/ML solutions, over the years.
• There's a corresponding rise in the budget allocated to Cybersecurity, suggesting
recognition of its importance for resilience.
• However, the frequency of Cybersecurity breaches continues to rise, reflecting an evolving
threat landscape despite increased investments in Cybersecurity measures.
• The impact on cyber resilience increases as SMEs adopt more advanced technologies,
supporting the hypothesis that technological innovation improves cyber resilience.

4.3 Test of Hypothesis

Table 1 above analyses the effects of technology adoption on cyber resilience. Based on the results obtained, it
shows that the adoption of cloud security and AI/ML increases steadily from 2018 to 2023. The resilience rating
shows a positive upward trend, suggesting that technology adoption is improving the ability of SMEs to
withstand cyber threats. More so, the frequency of breaches increases over the years despite the technology
adoption, suggesting that while SMEs are adopting advanced technologies, they may still be facing increasingly
sophisticated cyber threats.

Table 2: Technology Adoption and Cybersecurity Budget Allocation

Year % of SMEs Adopting % of SMEs Cybersecurity Budget Allocation (in

Cloud Security Adopting AI/ML % of overall budget)
2018 35% 20% 5%
2019 45% 30% 7%
2020 55% 40% 10%
2021 60% 50% 12%
2022 70% 65% 15%
2023 80% 75% 18%
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Table 2 above analyses the effects of technology adoption on Cybersecurity budget allocation. Based on the
results obtained, it shows that as the adoption of cloud security and AI/ML technologies increases, the
percentage of the budget allocated to Cybersecurity also rises. The rising budget allocation shows that SMEs
are investing more in Cybersecurity as they adopt more advanced technologies, which can positively
contribute to their cyber resilience.
Table 3: Correlation Between Technology Adoption and Cyber Resilience

Year % of SMEs % of SMEs Cyber Resilience Pearson Correlation Between Tech

Adopting Cloud Adopting AI/ML Rating (1-5) Adoption and Resilience
Security
2018 35% 20% 3.2 0.78
2019 45% 30% 3.5 0.80
2020 55% 40% 3.8 0.83
2021 60% 50% 4.0 0.85
2022 70% 65% 4.3 0.87
2023 80% 75% 4.5 0.90
Table 3 above analyses the correlation between technology adoption and cyber resilience. The positive Pearson
correlation between technology adoption and resilience (ranging from 0.78 to 0.90) shows a strong positive
relationship between the two variables. This suggests that as SMEs adopt more advanced Cybersecurity
technologies, their cyber resilience improves.

Table 4: Frequency of Cybersecurity Breaches vs. Technology Adoption

Year % of SMEs Adopting Cloud % of SMEs Adopting Frequency of Cybersecurity Breaches

Security AI/ML (per year)
2018 35% 20% 7
2019 45% 30% 8
2020 55% 40% 9
2021 60% 50% 10
2022 70% 65% 11
2023 80% 75% 12
Table 4 above compares the frequency of Cybersecurity breaches to technology adoption. The results show
that despite the increasing adoption of Cybersecurity technologies, the number of breaches continues to rise.
This suggests that although technologies are being adopted, they might not be fully effective in mitigating the
growing sophistication of cyber threats. This may indicate a need for more comprehensive Cybersecurity
strategies, including human factors (e.g., employee training and awareness), better implementation, or
integration of new tools.
4.4 Discussion of Findings
From the data tables above, the following findings were made:
• Increased adoption of cloud security and AI/ML technologies positively correlates with improved cyber
resilience (higher resilience ratings).
• The increase in breach frequency despite adoption of advanced technologies suggests that while SMEs
are better equipped to handle threats, the rising complexity and volume of cyberattacks are outpacing
their defense measures.
• The data supports the hypothesis that technology adoption has a positive impact on resilience, but the
increase in breaches calls for further investments in comprehensive Cybersecurity strategies, better
integration, and continuous employee training.
The implication of the above findings is that while technology adoption improves resilience, there are still gaps
in defending against evolving cyber threats. Thus, the hypothesis is supported to some extent, but it also
suggests areas for improvement.
V. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary
This study explores the role of emerging technologies, such as cloud security, artificial intelligence (AI),
machine learning (ML), and blockchain, in enhancing cybersecurity resilience for small and medium-sized
enterprises (SMEs) in the U.S. The research investigates the adoption of these technologies, their impact on
cyber resilience, and the effectiveness of existing Cybersecurity frameworks like NIST. Data analysis reveals a
positive correlation between technology adoption and improved resilience, although increasing cyber threats
continue to challenge SMEs' ability to mitigate breaches effectively.

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5.2 Conclusion
The research findings done in this study confirm that adopting advanced Cybersecurity technologies
significantly contributes to enhancing the cyber resilience of SMEs. However, despite these advancements,
SMEs still face an increase in Cybersecurity breaches, suggesting that technology adoption alone may not be
sufficient. The study highlights the need for integrated Cybersecurity strategies, including stronger policy
frameworks, ongoing employee training, and more robust implementation practices.
5.3 Recommendations
The study therefore recommends the following:
▪ SMEs should allocate more resources to Cybersecurity technologies and employee training to ensure
comprehensive protection against evolving threats.
▪ Policymakers should develop and promote frameworks like the NIST Cybersecurity Framework to
provide SMEs with clearer guidelines on Cybersecurity practices.
▪ SMEs should focus on better integration of cloud security, AI/ML, and Blockchain technologies,
ensuring they are fully optimized and aligned with business processes.
▪ SMEs should consider investing in Cybersecurity insurance to mitigate the financial risks associated
with potential cyberattacks.
▪ SMEs must regularly review and update their Cybersecurity strategies to stay ahead of emerging threats.

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American Journal of Humanities and Social Sciences Research (AJHSSR) 2025
Appendix A: Survey and Questionnaire for SME Owners and IT Managers Section 1: Demographic
Information
1. What is your role in the organization?
- [ ] Owner
- [ ] IT Manager
- [ ] Other (Specify)
2. What is the size of your business?
- [ ] Micro (1–10 employees)
- [ ] Small (11–50 employees)
- [ ] Medium (51–250 employees)
3. Industry Sector:
- [ ] Retail
- [ ] Healthcare
- [ ] Manufacturing
- [ ] IT and Technology
- [ ] Other (Specify)
Section 2: Cybersecurity Practices and Challenges
4. Does your organization have a dedicated Cybersecurity team or personnel?
- [ ] Yes
- [ ] No
5. Which Cybersecurity risks have you experienced in the past year? (Select all that apply)
- [ ] Phishing Attacks
- [ ] Ransomware
- [ ] Data Breaches
- [ ] Insider Threats
- [ ] Other (Specify)
6. What is the primary challenge in implementing robust Cybersecurity measures?
- [ ] Financial Constraints
- [ ] Lack of Expertise
- [ ] Resistance to Adoption
- [ ] Other (Specify)
Section 3: Adoption of Emerging Technologies
7. Which Cybersecurity technologies does your business currently use? (Select all that apply)
- [ ] AI/ML for Threat Detection
- [ ] Cloud Security Tools
- [ ] Blockchain Solutions
- [ ] None
8. How likely are you to adopt emerging technologies for cybersecurity in the next year?
- [ ] Very Likely
- [ ] Likely
- [ ] Unlikely
- [ ] Not at All
9. Rate your satisfaction with the current Cybersecurity measures in your organization.
- [ ] Very Satisfied
- [ ] Satisfied
- [ ] Neutral
- [ ] Dissatisfied
- [ ] Very Dissatisfied

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American Journal of Humanities and Social Sciences Research (AJHSSR) 2025
Section 4: Policy and Insurance
10. Are you familiar with the NIST Cybersecurity Framework?
- [ ] Yes
- [ ] No
11. Does your organization have Cybersecurity insurance?
- [ ] Yes
- [ ] No
12. If yes, how has Cybersecurity insurance helped mitigate financial risks?
- [ ] Greatly
- [ ] Moderately
- [ ] Slightly
- [ ] Not at All
Appendix B: Questions for Structured Interviews with Cybersecurity Consultants and Industry Experts
Section 1: Expert Background
1. Can you share your experience in the Cybersecurity field and your specific expertise in working with
SMEs?
2. What are the most common Cybersecurity vulnerabilities you observe in SMEs?
Section 2: Emerging Technologies
3. How effective are AI and ML in identifying and mitigating Cybersecurity risks in SMEs compared
to traditional methods?
4. What role does Blockchain play in enhancing data security for SMEs, and what are its limitations?
Section 3: Policy and Frameworks
5. How do you assess the effectiveness of the NIST Cybersecurity Framework in improving the resilience
of SMEs?
6. What policy or regulatory changes would you recommend to help SMEs adopt advanced Cybersecurity
measures?
Section 4: Recommendations and Insights
7. What are the primary barriers SMEs face in adopting emerging Cybersecurity technologies, and how can
these be addressed?
8. In your experience, how impactful is Cybersecurity insurance in reducing the financial risks for SMEs?
9. Can you provide a specific case or example where an SME significantly improved its
Cybersecurity resilience using innovative tools or frameworks?

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