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Small firms shun Y2K bug
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July 3, 1998: 9:45 a.m. ET
Inability of small businesses to confront problem could hamper economy
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NEW YORK (CNNfn) - Small companies are particularly vulnerable to the Year 2000 (Y2K) computer bug, yet many business owners are ignoring the problem, according to the Small Business Administration.
Unlike larger public and private organizations, which have task forces working to resolve the Y2K issue, many small business owners seem unfazed by or even unaware of the problem, the SBA reported.
The Y2K bug could result in major computer malfunctions due to an inability to handle the calendar change to the year 2000.
"Small business owners need to get their house in order now on the Y2K issue," said SBA Administrator Aida Alvarez. "I am concerned about disruptions that could occur to small companies who don't deal aggressively with this problem."
The inability of small businesses to cope with the Year 2000 bug could have far-reaching economic effects, added Alvarez.
"The collective health of America's 23 million small business is one of our economy's vital signs. When small business is disrupted to a significant degree, the effects ripple throughout the economy," Alvarez said.
To counter the problem, the SBA has undertaken a national public awareness campaign to alert small businesses to the risks associated with the Year 2000 computer problem.
A small business may be vulnerable to the problem either through its own computer system or through frequent and critical exposure to outside entities -- such as customers or suppliers -- with their own Y2K problems.
A company could also be susceptible through the malfunction of machinery or equipment that operates on time-dependent embedded microprocessors, such as security cards, elevators or telephones.
Alvarez recommends small business owners take the following precautions:
- Determine your business's Y2K risk with a self-assessment test.
- If your business is vulnerable, take action immediately. Fix the problem and test the results.
- Develop a contingency plan to deal with the Y2K problems beyond your control
- Stay informed on the issue.
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