The GDPR is a big risk for small businesses because it can impose significant fines for non-compliance. The maximum fine for a GDPR violation is 4% of the organisation's global annual turnover or €20 million, whichever is higher.
This means that even a small business could be fined millions for a GDPR violation.
Data breaches also have other negative consequences for small businesses:
- Damage to reputation
- Loss of customers
- Legal challenges
- Regulatory investigations