Common GDPR Challenges for Small Companies

28 March 2024

427 4 mins read

Complying with general data protection regulations can be a big challenge for small businesses, but taking some simple steps can help you be compliant.

Compliance with the GDPR’s regulations has been a part of everyday life for small businesses since it went into force. Small enterprises, meanwhile, have had trouble putting the GDPR into execution.

General data protection regulation was initially established by them as a collection of guidelines. In this article, learn about the GDPR issues that are thought to affect small and medium-sized businesses the most. Read about the advantages the GDPR gives to these companies as well. Secondly, for the benefit of the businesses and the reputation of the associated companies, this post will teach you how to comply with the rules that apply to all businesses, even the smallest ones.

Table of Contents

A Big Challenge for Small Businesses

Even though GDPR compliance can be challenging for all firms, small businesses face different challenges. For starters, they might not have the resources to implement a thorough, sophisticated security system. Security, however, goes beyond only preventing a data breach or a cyberattack in terms of risk mitigation. The general data protection regulation dictates that businesses undertake data protection impact assessments and employ a data protection officer, among other restrictions, and that they produce proof of compliance with those regulations. The GDPR compliance process is undoubtedly complex, and many businesses—particularly smaller ones that do not have privacy strategies in place—will need to make significant changes. The most crucial thing for small and midsize business (SMB) leaders to comprehend is how data, people, and location weave together to form patterns — both good and negative — across and within their organisations. If they want to improve their security features while keeping their budgets in check. You can only adequately protect your data if you understand it.

GDPR Challenges For Small Businesses

Privacy

SMEs must pay close attention to the legal justification for the processing of all personal data after becoming aware of the data handled. When relying on consent, small and medium-sized businesses must first be informed as soon as possible when this consent is received, especially for existing customers.

The basic rights listed in the general data protection regulation from articles 15 to article 22 must also be guaranteed to data subjects by SMEs; from a certain perspective, this means that SMEs must ensure that systems and processes have been put in place to ensure that these rights are met within the legally prescribed time frame (one month).

It is important to keep in mind what is required under article 25 of the GDPR in this situation. It states that data protection must be taken into consideration when systems and internal business processes are implemented, just before processing is started.

Security

Data must be protected, but there are many different types and different levels of danger attached to each. Even SMEs are obligated by the GDPR to assess whether sorts of data processing potentially pose a high risk to people once they have determined the type of data handled. SMEs are actually a part of a larger supply chain, and while they aren’t generally thought of as the best targets for hackers, they are often seen as a means of connecting with the “big guys” at the top, to whom SMEs serve as suppliers.

Governance

Dealing with data necessitates a new approach to reviewing internal and external management systems, especially for organisations like SMEs. There should be a shared policy among all staff members outlining procedures, data retention policies set by the business, and the purposes of the data processing in place before implementing a system for the management of personal data, including what the company is expected to do in the event of a data breach. In addition, good governance involves fostering the company’s connections with suppliers. For example, in the case of IT services, the client (the company) serves as the controller and the provider serves as the processor. The agreement with a supplier in charge of the employee payroll could be based on the same kind of relationship. In both of these scenarios, the business is expected to demand a contract that outlines the organisational and technical measures that will be used to manage and protect data.

Helpful GDPR elements for SMEs

Although some aspects of the GDPR are optional for SMEs, they nonetheless offer useful standards for what small businesses might accomplish:

Records of processing activities: Records of processing activities could serve as the first step for small businesses to set and review the processing in place, to assign responsibilities, and to establish policies that are shared by all employees, even though this requirement is not mandatory for businesses with fewer than 250 employees (unless in situations where data processing could result in high risk).

Appointing a Data Protection Officer (if necessary):It is possible that some SMEs’ primary functions involve handling sensitive personal data or large-scale processing procedures. In this situation, the GDPR suggests designating a DPO, a person who is independent of management and the team handling the processing (even though he or she may be an employee of the organisation).

Data protection impact assessment: Regardless of how big an organisation is, the GDPR suggests this as one of the most important tools. In order to comply with the DPIA, organisations must analyze each process, determine its relevance and necessity, and control any risks that may arise from data processing.

Conclusion

All small businesses should adhere to general data protection regulations. If you take action quickly and set up the necessary tools and processes for the efficient management of data security and employee and customer privacy, it becomes manageable. The steps you take to be GDPR compliant will give you a competitive advantage, improve your reputation for best practices, and lay the groundwork for ethical data insights.If you’re a small business who wants to overcome your GDPR challenges, our best legal experts at Vakilsearch can help you become GDPR compliant without any hassle.

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