THE ECONOMIC IMPACT OF CYBERSECURITY THREATS ON ENTERPRISES IN UZBEKISTAN: An analysis of the cost of data breaches and ransomware for small and medium-sized businesses and their defence strategies

ABSTRACT This study examines the economic impact of cybersecurity threats on enterprises in Uzbekistan, with particular attention to the cost of data breaches and ransomware attacks for small and medium-sized enterprises (SMEs). As the national economy digitalises, businesses are increasingly exposed to cyber risk, yet the financial consequences of these threats remain poorly quantified in the local context. Drawing on a mixed-methods design, we surveyed 520 enterprises across the country and supplemented the survey with incident records and 35 in-depth interviews with IT managers. The findings show that 41 percent of the surveyed enterprises experienced at least one significant security incident over the previous two years, and that the average direct cost of a single breach was equivalent to roughly 6.8 percent of an affected SME's annual revenue. Beyond direct losses, the study documents substantial indirect costs—operational downtime, reputational damage and lost customers. Regression analysis confirms that investment in basic security controls and staff training significantly reduces both the likelihood and the cost of incidents. The study concludes that cybersecurity should be treated as a core economic concern rather than a purely technical one, and that affordable, well-targeted defence measures offer a strong return for resource-constrained SMEs.