Absolutely.
One investigation that pops to mind was of a new start-up selling widgets on the net. They were clearly very excited about their new business and didn't think about privacy. What they were focused on was being a nice start-up on the internet, until one of their customers said, I've been defrauded of so many thousands of dollars. The start-up did not find the breach themselves. Then another customer said, I've been defrauded. Then everyone tracked it down to them, and sure enough, it was them.
There are tons of examples like that. In fact, many big companies will tell you that their weakest link is the SMEs that are in their supply chain. Much of the attention is turning there.
The answer to your question, then, is yes, absolutely there is harm.