Small business (SMB) cybersecurity has never been simple, but it’s become even more complex in recent years. Today’s businesses have to deal with an ever-growing number of apps and tools to secure, and this complexity is naturally going to be far harder for small teams to manage. Particularly for very small businesses.
Unfortunately, bad actors have realized this; CISA reports that “cyber incidents have surged among small businesses that often do not have the resources to defend against devastating attacks like ransomware.”
For small teams, simplicity is key to staying secure. And while cybersecurity can feel overwhelming and riddled with technical complexities, sometimes it’s almost shockingly simple.
For instance, you may currently be asking yourself, “What’s the first security tool that I should buy for my small business?” The answer to that question actually isn’t all that complicated. The first cybersecurity tool that a small business should buy is, quite simply, a password manager.
And while the problems facing a modern business may be complex, password managers are the first step to help entrepreneurs build their company on a secure foundation. This article explores why a password manager is the most practical, impactful, and scalable solution to secure your small business. We’ll also be sharing quotes from SMBs who have improved their security with 1Password.
There’s a reason why CISA explicitly recommends that SMBs use password managers. As they put it, “A company-wide password manager makes it easier for employees to follow best practices.”
The key word is “easier.” Whether a small business has 2 or 500 employees, the most important factor in a password manager’s impact and efficacy is its ability to keep systems secure while making life easier for employees and administrators. These are key considerations for small businesses, who need solutions that will meet them where they are, while also being able to grow with their company over time.
No business is too small to be a target for cybercrime. CISA reports that, “cyber incidents have surged among small businesses that often do not have the resources to defend against devastating attacks like ransomware.” And since stolen credentials have factored into almost one-third of all data breaches over the last 10 years, small business owners who are looking to make the most of their limited budget and manpower should prioritize the most pressing risk facing their organization: weak credentials.
Unfortunately, 1Password’s 2025 Annual Report found that two-thirds of employees still admit to unsafe password practices, including:
“I have the same passwords across multiple work accounts”
“I have used the same passwords for both work & personal accounts”
“I text, email, or direct message passwords to myself or colleagues”
“I share credentials with colleagues to access certain websites or applications
Business password managers keep companies secure by making sure that every employee is using unique, complex passwords to access all of their work accounts. This makes it so that if a password to one account is stolen, either through a larger breach or a more targeted phishing attack, it won’t open multiple doors to compromise your business.
1Password Enterprise Password Manager is uniquely suited to help entrepreneurs and small business owners secure and manage their team’s credentials. The tool generates strong, unique passwords for business accounts and flags any weak passwords in use. Admins even receive 1Password Watchtower alerts whenever one of their passwords appears in a data breach, enabling them to change the password before it can be used by bad actors.
A password manager also makes it simple to give employees, contractors, or other business partners access to credentials. Teams can use vaults to give users access only to the shared accounts that they need, when they need to access them. Furthermore, they can share this access without ever using email, text, or messaging apps.
“Password management is critical for security. Employees were using duplicates and protected Word files containing passwords before moving to 1Password. If we provide this solution, there are no excuses. Staff can’t say it’s difficult to use, or it’s difficult to access. Because it’s easy to use, and now it’s easier to access.”
–Diego de Haller, Cybersecurity Lead of the Technology Department, Frontiers,
The ease-of-use, for both admins and end-users, is a critical element to consider for security solutions, no matter the size or scale of a company. This is even more true for SMBs, who often have small and strapped IT teams (if they have an IT team at all). If a solution is too difficult to implement, or too disruptive to employee workflows, then users may find workarounds to avoid it, or may not use it at all.
Password managers are effective security in part because they’re simple to implement while actually making life easier for end-users. For instance, rather than juggling hundreds of passwords across various spreadsheets and email chains, 1Password generates and stores strong passwords, while the app and 1Password browser extensions autofill passwords into users’ various company accounts.
Entrepreneurs and small companies often need to move fast, but cybersecurity can easily slow things down. However, 1Password actually lets teams improve productivity and stay agile.
Securely allocating employee access to company resources can often be a stressful and time-consuming process, particularly when it comes to safely sharing. With 1Password, businesses can use vaults to quickly give employees and contractors access only to the strong passwords and other sensitive information they need to do their jobs.
“We’re not a massive business, it’s just six of us, but 1Password saves a lot of time. Since we don’t have a network administrator or a real IT person, 1Password allows me to focus on the other aspects of our business without having to worry about our security.”
Finally, SMBs need to consider how well a security tool will scale with their company as it grows. Password managers like 1Password are uniquely suited to growing companies because they scale so well.
Part of this is due to how the solution works cross-platform. 1Password works on Mac, PC, and Linux, as well as most major browsers. It also integrates with various other SaaS tools, like Okta and GitHub. All of this means that the password manager will work with a company’s tech stack as it grows and evolves over time.
Moreover, as companies grow, they’ll face more challenges in meeting compliance with various cybersecurity guidelines. Standards like SOC 2, PCI DSS, and HIPAA all have strict requirements regarding a company’s password practices. 1Password Business doesn’t just meet those standards, but provides activity logs of major events, to help companies prove their compliance to auditors over time.
Essentially, password managers enable companies to start on a secure foundation that can continue to support business security needs as they grow their workforce, toolset, and other programs.
“1Password is one of the easiest tools to onboard and offboard people. It takes 5 seconds on each side.”
Running a small business will never be simple, and we can’t pretend that SMB cybersecurity will ever be either. At the same time, there’s strength in simplicity and small teams are in an enviable position; they have the chance to truly get back to the basics while building their security programs.
A password manager is one of the most impactful security tools that a small team can manage. It addresses the most basic risk facing modern security – insecure credentials – while making work easier for lean teams.
If you’re looking for the first security tool for your business, the answer is simple: get a password manager.
Learn more about getting your small business secured with 1Password.
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