A focus on small firms Survey finds many businesses have no contingency plans; Clinton seeks funding for areas near NYC

BY JAMIE HERZLICH

Small businesses are the backbone of the local economy, but many smaller American firms would have difficulty conducting their business in the case of a major attack, says a new report on corporate security.

The Conference Board, a New York business organization, said most midsized companies view their spending on security as a sound investment, but a large minority sees it as an expense that must be minimized. The report, sponsored by the U.S. Department of Homeland Security, found increases in security spending are lowest among the smallest companies.

Nearly half of the companies surveyed nationally said they had not increased their security spending since 9/11, even though nearly 80 percent reported a disruption in business travel due to the 2001 terror attacks, and 47 percent reported the attack caused a drop in revenues.

"Given the vital role played by smaller companies in the U.S. economy, the economic impact could be quite severe should we suffer another 9/11 type attack in heavily populated areas," said Tom Cavanagh, the report's author.

The smaller the company, the less likely it has procedures in place to handle security problems, the study found, with cost being a factor.

Some small companies told Newsday such planning simply isn't practical for them. "I'm not thinking of contingency plans or security plans," said Eric Greenberg, president of Green Mountain Graphics, a 10-person sign company in Long Island City, who does work in midtown. "It's a reality over which I have very little control."

Howard Kipnes, vice president of Multimatic Products, a machine parts and industrial supply maker in Hauppauge, says the 25-employee company would be more focused on a contingency plan if the company dealt with "highly classified" or sensitive materials. Plus, he noted that the Hauppauge Industrial Park has talked with law enforcement officials about contingency plans for the park.

It's smart for Long Island to think beyond its borders, Sen. Hillary Rodham Clinton told about 800 local business leaders yesterday at the Crest Hollow Country Club in Woodbury.

Clinton has been calling for a change in the way homeland security funds are distributed, arguing that funding should be allocated on the basis of threat levels, instead of population.

"This is not just about getting money to the city," said Clinton, who addressed the Long Island Association. "The surrounding areas are drastically affected by what happens in New York City."

Barbara Viola, president of Viotech Solutions in Farmingdale, a technology staffing firm, who was a small business honoree at the Clinton breakfast, said it made her think harder about disaster plans.

"We have to really start thinking about a lot of the contingency issues," said Viola, who has adopted some contingency measures like backing up its computers. "I think basically as a small business your energy is marketing and running your business."