Data is being treated as today's gold by many people, but an excessive amount of data can trigger various problems that can make it harder for big and small businesses to understand how to harvest insightful and important information from the huge stockpiles of data that they have gathered.
The most concerning fact is that a chunk of data could impact entrepreneurs who are seeking to clinch a commercial loan for their businesses if it was wrongfully used. The US Small Business Association would recommend the filtering of excess data to improve the loan process, paving the way to a better service towards business owners and the 28.8 million small businesses that are operating in the country today.
Previously, storing huge amounts of data was deemed cost-prohibitive and impractical. The introduction of a distributed cloud-based storage has prompted businesses to keep all data varieties, particularly the consumer and commercial varieties. The vast quantity of data has lead to the formation of a "data lake": a strategy of housing data within a storage system or repository in its raw or native format. It is like a huge pool where companies deposit big amounts of data that will be used at a later date for analysis.
However, Entrepreneur's Michael Carter wrote that data lakes can establish mismanaged data sets that would transform what was designed to be an easily accessible storage system into a "data swamp" that features little governance and "data that are hard to use and consumed out of context."
A data swamp can cripple entrepreneurs and small-business owners if in the hands of commercial lenders.