How fake news affects small and medium-sized businesses

Within the “Focus” project, Pannonia Consulting, together with partners Youth Power Germany, OLAE and POU AMC NG, carried out research into how fake news affects business decision making in small and medium-sized enterprises in Germany, Croatia and Portugal. The results show that entrepreneurs are aware of the problem and take proactive steps to protect themselves, but stress the need for continuing education in media literacy and fact checking.

The research revealed several key findings:

• Awareness of fake news: 93% of respondents are aware that fake news exists.
• Following the news: over 80% of respondents follow the news daily or several times a week.
• Financial impact: more than 20% of respondents reported a moderate financial impact of fake news on their business.
• News sources: social media is the main source of news for most respondents, although it was rated the least reliable.
• Fact checking: most respondents check facts using specialised fact-checking websites and reliable news sources before making business decisions.

What does this mean for businesses?

Fake news can cause a range of problems for small and medium-sized enterprises:

• Financial losses: disinformation can lead to poor business decisions, which can result in financial losses.
• Damage to reputation: negative and inaccurate information can damage a company’s reputation, particularly when it spreads quickly on social media.
• Misleading information about the market: fake news can distort the perception of a market, which can push entrepreneurs into the wrong strategic decisions.

Entrepreneurs stress that it is essential to keep learning about media literacy and to use reliable sources for checking facts.

Although fake news is a real threat to small and medium-sized enterprises, awareness of the problem and the proactive steps entrepreneurs take give grounds for hope. Continuing education and the use of reliable sources of information are key to reducing the damage fake news does to business.

Pannonia Consulting will continue to carry out similar research and training to help entrepreneurs meet the challenges the digital age brings. Follow our work and support us in our efforts to provide the education and the tools needed to counter disinformation.

For more information, visit our website and get in touch. We look forward to working with you towards an informed and resilient business environment.