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Y2K bug bites small firms
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January 6, 1999: 3:02 p.m. ET
Substantial steps already taken may not be enough to ward off millennium problem
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NEW YORK (CNNfn) - Although many small businesses have taken substantial steps toward addressing the Y2K computer problem, most still have a long way to go, a new study has found.
According to a survey by the National Federation of Independent Business, 1.9 million, or 40 percent, of small firms with equipment that should be checked for Y2K vulnerability have addressed the millennium issue. Another 19 percent plan to follow suit, though they had not yet begun to do so as of October.
"The good news is that most small-business employers either already have checked out their Y2K status or made plans to do so," said William Dennis, author of the study.
However, more than half of all small firms using computers or other devices with time/date microchips have yet to take the necessary steps to ensure their systems are immune to the millennium bug.
About one-third of those who know about the problem still have no plans to assess their risks. Another 5 percent aren't even aware of the Y2K problem, even though they use equipment that may be vulnerable to the bug.
Those small business owners who don't plan to evaluate their Y2K readiness believe the problem isn't serious enough to worry about, according to Dennis. The study indicates many of these business owners may be right -- at least when it comes to their own operations.
Nine of every 10 small firms reported that their most critical software is less than two years old. Nearly all of those surveyed reported no critical software more than five years old.
Because many small firms have updated their critical software in the normal course of business, relatively few small firms should suffer from software problems written in ignorance of the Y2K glitch, Dennis said.
However, though their own software may be millennium bug-free, many small firms still may be affected adversely by the Y2K problems of their suppliers, customers or financial institutions. Little more than a third of small employers have checked the Y2K preparedness of their suppliers or banks.
"Many small-business owners feel they are in no position to ask for Y2K verification, particularly from customers," Dennis said. "One can only hope they won't regret their decision on Jan. 1, 2000." 
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