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Small businesses that cannot hire a dedicated security leader can turn to managed security providers, virtual or fractional CISOs, internal staff development, or community support. NIST recognizes these as practical options for organizations that lack in-house cybersecurity expertise, resources, or budget. That makes the need real—but the available evidence does not establish how many small businesses lack a CISO, how many buy managed security, or how large the revenue opportunity is for MSSPs.
What the “CISO gap” means for a small business
The gap is best understood as a constraint on expertise and capacity, not proof that every small or midsize business has an unfilled chief information security officer role. Some businesses need strategic security leadership but cannot justify a full-time executive; others need hands-on technical work, help building basic practices, or advice on particular obligations. The right response depends on the company’s systems, resources, and risk.
NIST’s current small-business guidance identifies managed service providers (MSPs), managed security service providers (MSSPs), and virtual or fractional CISOs as outsourcing options, particularly for businesses without the expertise, resources, or budget to provide cybersecurity in-house. These services can address different needs: an MSSP may provide ongoing security operations, while a virtual or fractional CISO can offer leadership and planning. Scope varies by provider, so buyers should define the work and outcomes rather than infer them from a label. NIST’s cybersecurity team guidance sets out these options.
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How large is the opportunity?
The need for outside help is credible; its market size is not established by the cited figures. NIST’s April 14, 2026 initial public draft, Small Business Cybersecurity: Non-Employer Firms, cites the U.S. Small Business Administration Office of Advocacy for a population of 34.8 million U.S. small businesses. It also reports that 81.9% are non-employer firms—businesses with no paid employees other than the owner or owners. Those figures describe the business population, not the number without a CISO, the rate of MSSP adoption, or potential provider revenue. The draft is tailored to non-employer firms and businesses with minimal IT complexity; it is not a sizing study for the MSSP market. Read the NIST draft and its scope.
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For an MSSP, the practical opportunity is therefore a service-fit question: which businesses have security needs that outside expertise can address, and can the provider deliver that work reliably? The cited sources support the existence of outsourcing needs and options; they do not quantify demand, adoption, pricing, or the share any provider could capture.
Which support path fits the business?
NIST recommends choosing based on the organization’s needs and resources. These paths can also be combined—for example, an employee may coordinate with an outside specialist—rather than treated as mutually exclusive.
| Option | When it may fit | What to clarify |
|---|---|---|
| Upskill or reskill existing staff | There is an employee or IT team with capacity to take on security work and familiarity with the company’s systems. | Identify the skills and time required, and determine which specialist tasks still need outside support. |
| Hire cybersecurity staff | The organization has a sustained need and the resources to recruit and support an employee. | Define the role and capabilities needed before recruiting; NIST recommends starting with the organization’s cybersecurity needs. |
| Use an MSP or MSSP | The business needs external technical or managed services it cannot provide internally. | Specify outcomes, exact services, service levels, responsibilities, and how the provider secures its own environment. |
| Engage a virtual or fractional CISO | The business needs security leadership or planning without assuming that a full-time in-house leader is the only option. | Agree on the leadership work, decision authority, deliverables, and coordination with internal staff or technical providers. |
| Seek community or work-based support | Resources are very limited and the IT setup is simple enough for community support or a clinic to be useful. | Check whether the support can address the business’s actual technical needs and any external obligations. |
Complexity and obligations can change the answer. NIST notes that a simple environment and limited resources may make community clinics useful, while more complex systems or demanding legal, regulatory, or contractual requirements may call for a cybersecurity vendor or trained internal staff. A small headcount alone does not establish that a business has simple security needs.
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Outsourcing adds a provider to the business’s security dependencies; it does not make the provider’s systems irrelevant. NIST’s National Cybersecurity Center of Excellence describes MSPs as attractive targets and explains that a compromised provider can increase the vulnerability of the small and midsize businesses it supports. The October 2019 project description is foundational risk context, not a current measure of incidents or market conditions. NIST NCCoE’s MSP cybersecurity project explains this provider-customer interdependence.
That exposure makes provider diligence part of the security decision, not just procurement. Ask how the provider protects its own environment and limits customer exposure. The customer should also understand which party performs each task and how incidents, access, and service failures are handled in the agreed scope.
A practical checklist for choosing cybersecurity support
- Define the outcomes first. Describe the business problem and the result needed before comparing providers or service labels.
- Map the work to the right capability. Decide which needs require ongoing technical operations, security leadership, staff training, or a combination.
- Account for complexity and obligations. Consider the systems involved and relevant legal, regulatory, and contractual requirements. A vendor or trained internal staff may be more appropriate than community support when the environment or obligations are demanding.
- Assess relevant experience and fit. Ask providers about experience in the business’s industry and ability to meet its requirements; compare the proposed work against the stated outcomes.
- Request multiple quotes. Compare the scope and service levels alongside cost. NIST advises against selecting on price alone.
- Check provider security. Ask what safeguards protect the provider’s own environment and how those practices limit exposure for customers.
- Put responsibilities in writing. Document service levels, expectations, and who is responsible for each task in a formal agreement.
- Retain customer accountability. NIST states, “You are ultimately responsible for protecting your systems and data.” Outsourcing work does not transfer the business’s responsibility for its systems and customer information.
NIST also cautions that no business can prevent every cybersecurity incident and advises building a cybersecurity plan that supports business objectives. That makes a defined plan and clear responsibilities useful whether the business hires staff, develops internal capacity, or relies on a provider.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What MSSPs should take from the opportunity
For providers, the evidence points to a real service category, not a guaranteed pipeline. Small businesses have recognized reasons to seek outside cybersecurity expertise, and NIST explicitly includes MSSPs and virtual or fractional CISOs among the options. But the business-count figures should not be used as a proxy for customers or revenue. A credible offering must match the customer’s needs, explain responsibilities, demonstrate relevant experience, and account for the security risk the provider itself introduces.
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