Vulnerability of community businesses to environmental disasters

Business plays important roles in community functioning. ² However, disaster research has been disproportionately focused on units of analysis such as families, households and government agencies. This paper synthesises the major findings within the business development research field and the disaster research field. It constructs a framework for evaluating business vulnerability to natural disasters. Our theoretical integration of the research conducted to date addresses five major issues. First, it defines the ways in which businesses are subject to the impacts of natural disasters. Second, it identifies the factors that determine the magnitude of business impacts after a disaster. Third, it identifies how and when businesses return to their pre-disaster level in the disaster stricken community. Fourth, it describes measures that can be taken by individual firms and community planners to reduce the impacts of environmental disasters. Fifth, it identifies needs for public policy and future research to reduce business vulnerability to environmental disasters.     

Forgetting about hazard

Abstract

This paper examines long-term recovery outcomes of businesses impacted by major natural disasters. Data were collected via two large-scale mail surveys—one administered to Santa Cruz County, California businesses 8 years after the Loma Prieta earthquake and the other administered to businesses in South Dade County, Florida, 6 years after Hurricane Andrew. Based on the results of OLS regression models, we argue that long-term recovery experiences of businesses are affected by various factors, including the economic sector in which a business operates, its age and financial condition, and the scope of its primary market; direct and indirect disaster impacts, including physical damage, forced closure, and disruption of operations; and owner perceptions of the broader economic climate. Previous disaster experience, level of disaster preparedness, and use of external sources of aid were not found to significantly affect the long-term economic viability of businesses in the two study communities.     

The impact of disasters on small business disaster planning: a case study

A major flood in 1997 forced the evacuation of Grand Forks, North Dakota and caused damage of USD 1 billion. Despite this recent disaster there is only marginal evidence of an increase in disaster recovery planning by businesses that experienced the flood. This finding is consistent with the results of other business-related disaster research. Statistical tests of survey results from 2003 indicate that there is a significantly higher rate of disaster recovery planning in businesses started since the 1997 flood than in businesses started before the flood and still in business. Such an outcome indicates a need for public policy actions emphasizing the importance of disaster planning. Improved disaster planning is an aid to business recovery and the results demonstrate the need for more widespread efforts to improve disaster recovery planning on the part of smaller businesses, even in areas that have recently experienced disasters.     

Disaster vulnerability of businesses in the 2001 Nisqually earthquake

Abstract

This paper examines the impacts of the February, 2001, Nisqually earthquake on businesses. Focusing on two hard-hit business districts in Seattle, the study investigates the extent of losses, patterns of disparities, and underlying loss factors. A conceptual framework is proposed of how business vulnerability dimensions contribute to disaster loss. Interviews were conducted with owners and managers of 107 businesses. Data were gathered on impacts, methods of finance, and disaster preparedness. Results showed that business losses were much greater than what standard statistical data would imply. Analysis found that a composite index of vulnerability—based on business sector, size, and building occupancy tenure—provides a very powerful predictor of business loss. Physical damage was a much weaker predictor of loss. Moreover, business recovery was influenced not only by characteristics of the business itself, but also by conditions in the neighborhood.     

The role of lifeline losses in business continuity in the case of Adapazari,Turkey

Despite the fact that one of the main reasons for business discontinuity after the shock of a natural disaster is lifeline outages, individual preparedness and recovery efforts have been given priority. This paper focuses on the significance of lifeline services for business continuity in order to highlight the necessity for collective action to achieve community recovery. Post-disaster research was conducted on a sample of business survivors in the town of Adapazari, which was severely affected by an earthquake in 1999. The study looked into the dependence of businesses on various infrastructure systems and the effects on those businesses of lifeline outages. The findings of the study address the need for community-level actions that are beyond the capability of any individual firm and which will ensure the continuity of business.     

The continued operation of businesses after an earthquake: a case study from Lushan County,China

This study performed a comparative analysis of changes in the operating status of initial surviving disaster‐stricken businesses and non‐disaster‐stricken businesses in Lushan County, China, after a devastating earthquake on 20 April 2013. It used a logistic regression model to explore the key factors associated with ‘post‐disaster continued business operation’ in the long term. Field data were collected from 1,078 businesses and questionnaire data from 263 small businesses between 2013 and 2017. The results indicate that a higher proportion of initial surviving disaster‐stricken businesses than non‐disaster‐stricken businesses managed to remain operational in each observation period. The continued operation of disaster‐stricken businesses after the earthquake was positively associated with the owner's age, previous disaster experience, pre‐disaster financial conditions, closure duration, and borrowing money from family or friends. A negative association was found with the size of the business. The findings serve as a vital reference for strategies to promote post‐disaster continued business operation.     

Building community resilience: business preparedness lessons in the case of Adapazarı, Turkey

The lack of attention paid to businesses in disaster management systems from the standpoint of state policies hampers efforts to build community resilience. This paper examines, therefore, the extent of business preparedness for disasters. Empirical research was conducted in Adapazarı, Turkey, 13 years after the İzmit earthquake, which struck the northwest of the country on 17 August 1999, claiming the lives of some 17,000 people. For the study, 232 firms were selected to inquire about their preparedness before and after the event. It is hypothesised that business preparedness is influenced by the following set of variables: business size; business sector; business age; financial condition prior to the disaster; occupancy tenure; market range; education level; and previous disaster experience. In line with the findings of the research, a policy framework is constructed to rationalise the allocation of resources for building resilience at the aggregate level by facilitating business preparedness.     

Business recovery: an assessment framework

This paper presents a Business Recovery Assessment Framework (BRAF) to help researchers and practitioners design robust, repeatable, and comparable studies of business recovery in various post‐disruption contexts. Studies assessing business recovery without adequately considering the research aims, recovery definitions, and indicators can produce misleading findings. The BRAF is composed of a series of steps that guide the decisions that researchers need to make to ensure: (i) that recovery is indeed being measured; (ii) that the indicators of recovery that are selected align with the objectives of the study and the definition of recovery; and, where necessary, (iii) that appropriate comparative control variables are in place. The paper draws on a large dataset of business surveys collected following the earthquakes in Canterbury, New Zealand, on 4 September 2010 and 22 February 2011 to demonstrate the varied conclusions that different recovery indicators can produce and to justify the need for a systematic approach to business recovery assessments.     

Home buyouts and household recovery: neighborhood differences three years after Hurricane Sandy

Home buyout programs facilitate the permanent relocation of residents away from areas considered to be at risk from future hazards, though few studies have examined the impacts of home buyout programs on affected households and communities beyond the program implementation period. In this paper, we examine between-neighborhood variation in key recovery indicators for three neighborhoods that followed different paths to recovery after Hurricane Sandy: one that rebuilt in situ, one that participated in a buyout and relocated, and one located immediately adjacent to the buyout zone. Three years post-disaster, buyout participants are faring worse in terms of place attachment and social capital compared to residents in the other two neighborhoods, while the neighborhood adjacent to the buyout zone is also showing signs of decline. These findings suggest that the social costs of buyouts extend well into the recovery period, and that the place-based ties and social networks that would typically help individuals cope with disaster impacts and persevere through adversity may be diminished for buyout participants, ultimately hindering their recovery. We conclude with a discussion of the implications of buyouts on participating and affected communities, as well as implications for research and policy.     

Understanding recovery of small enterprises from natural disaster

This study, carried out among 251 small-scale firm owners by means of a cross-sectional survey, attempted to identify the factors affecting business recovery from disaster in a flood-prone area of Bangladesh. We selected the participants by using a convenience sampling technique, taking into consideration the characteristics of the firms, and the various enabling- and disaster-impact factors needed to identify those factors significant to business recovery from natural disaster. Results demonstrated that more than three-quarters (87.3%) of owners recovered their firms after disaster. Multivariate logistic regression analyses revealed that a total of six variables had a significant impact on business recovery: two variables pertaining to the firms’ characteristics, namely, retail firms (OR?=?0.147, P?<?0.05) and the number of employees >4 (OR?=?0.094, P?<?0.01); two variables pertaining to enabling factors, namely, receiving loans (OR?=?0.232, P?<?0.01) and the perception of recovery (OR?=?16.178, P?<?0.01); and two variables pertaining to disaster-impact factors, namely, an income loss amounting to >BDT 2000 (OR?=?7.395, P?<?0.05) and permanent or temporary relocation of the market (OR?=?9.252, P?<?0.001). Results further demonstrated that almost equally half of the owners recovered their firms immediately or within 7 days after disaster (50.9%); the remaining 49.1% took longer. Multivariate analyses, on the other hand, significantly identified three characteristics, namely, 6–10 years of business operation (OR?=?0.267, P?<?0.01), 2–4 employees (OR?=?0.1.822, P?<?0.01), and a monthly income of BDT 5001–7500 (OR?=?4.167, P?<?0.01); two enabling factors, namely, institutional education (OR?=?0.400, P?<?0.05) and awareness of disaster assistance (OR?=?0.607, P?<?0.05); and two disaster-impact factors, namely, loss of human resources (OR?=?6.293, P?<?0.05) and interrupted supply of raw materials (OR?=?4.741, P?<?0.05). We concluded the study with discussions of a few policy implications.     

Urban disaster recovery: a measurement framework and its application to the 1995 Kobe earthquake

This paper provides a framework for assessing empirical patterns of urban disaster recovery through the use of statistical indicators. Such a framework is needed to develop systematic knowledge on how cities recover from disasters. The proposed framework addresses such issues as defining recovery, filtering out exogenous influences unrelated to the disaster, and making comparisons across disparate areas or events. It is applied to document how Kobe City, Japan, recovered from the catastrophic 1995 earthquake. Findings indicate that while aggregate population regained pre‐disaster levels in ten years, population had shifted away from the older urban core. Economic recovery was characterised by a three to four year temporary boost in reconstruction activities, followed by settlement at a level some ten per cent below pre‐disaster levels. Other long‐term effects included substantial losses of port activity and sectoral shifts toward services and large businesses. These patterns of change and disparity generally accelerated pre‐disaster trends.     

Organisational resilience following the Darfield earthquake of 2010

This paper presents the preliminary findings of a study on the resilience and recovery of organisations following the Darfield earthquake in New Zealand on 4 September 2010. Sampling included organisations proximal and distal to the fault trace, organisations located within central business districts, and organisations from seven diverse industry sectors. The research captured information on the challenges to, the impacts on, and the reflections of the organisations in the first months of recovery. Organisations in central business districts and in the hospitality sector were most likely to close, while organisations that had perishable stock and livestock were more heavily reliant on critical services. Staff well‐being, cash flow, and customer loss were major concerns for organisations across all sectors. For all organisations, the most helpful factors in mitigating the effects of the earthquake were their relationship with staff members, the design and type of buildings, and critical service continuity or swift reinstatement of services.     

Theorizing distributive justice and the practice of post-disaster housing recovery

This paper examines the implications of contemporary conceptions of distributive justice for post-disaster recovery programmes. The question asked in this paper is essentially theoretical: what does a concern with distributive justice entail when developing and evaluating post-disaster recovery programmes? Housing recovery programmes are employed to provide a contextual grounding for the discussion. We present a review of the disaster recovery literature and recent programmes of post-disaster housing recovery to map the ways in which distributive justice have been theorized, interpreted, debated and put into practice. We reflect on what different principles of distributive justice imply for post-disaster recovery programmes in terms of their impact on opportunities for individuals and communities to recover from disasters, and also on their realizing possibilities of advancing justice in the post-disaster society. The paper concludes by outlining a number of dimensions of a pluralist account of distributive justice. Using these dimensions and taking into account tensions within and between them, we attempt to offer a framework for reflecting on and assessing distributive arrangements of disaster recovery programmes.     

Assessing non‐metro recovery across two continents: issues and limitations

Rural and remote areas of countries such as Australia and the United States are less well‐resourced and often poorer than their city counterparts. When a disaster strikes, therefore, their long‐term recovery can be impeded by being situated ‘over the horizon'. Nonetheless, they are likely to enjoy higher social capital, with ‘locals’ banding together to help restore economic and social life in the wake of a calamitous incident. At the same time, a repeat of extreme events, springing in part from alteration to the landscape through intense human occupation, threatens to derail sustainable recovery processes everywhere, suggesting that renewed emphasis needs to be placed on preparedness. Improved metrics are also required, spanning both pre‐ and post‐disaster phases, to determine effectiveness. Moreover, a focus on the ‘hardening’ of towns offers a better return in limiting damage and potentially hastens the speed of recovery should these places later fall victim to extreme events.     

Assessing the impact of the Indian Ocean tsunami on households: a modified domestic assets index approach

This paper offers a potential measurement solution for assessing disaster impacts and subsequent recovery at the household level by using a modified domestic assets index (MDAI) approach. Assessment of the utility of the domestic assets index first proposed by Bates, Killian and Peacock (1984) has been confined to earthquake areas in the Americas and southern Europe. This paper modifies and extends the approach to the Indian sub‐continent and to coastal surge hazards utilizing data collected from 1,000 households impacted by the Indian Ocean tsunami (2004) in the Nagapattinam district of south‐eastern India. The analyses suggest that the MDAI scale is a reliable and valid measure of household living conditions and is useful in assessing disaster impacts and tracking recovery efforts over time. It can facilitate longitudinal studies, encourage cross‐cultural, cross‐national comparisons of disaster impacts and inform national and international donors of the itemized monetary losses from disasters at the household level.     

Post-disaster community tourism recovery: the tsunami and Arugam Bay, Sri Lanka

Tourism is highly vulnerable to external, non-controllable events. A natural disaster can affect the local tourism industry in numerous ways, and such events are particularly devastating for small communities whose local economy is heavily dependent on the sector. Loss of infrastructure plus negative media stories can have long-term ramifications for the destination. In spite of the economic importance of tourism, post-disaster recovery efforts in this sector are often overlooked by non-governmental organisations (NGOs), which focus on more traditional livelihoods such as agriculture or fishing. This paper describes Mercy Corps' support of tourism recovery activities in Arugam Bay, a remote village on the east coast of Sri Lanka, following the 2004 tsunami. The local economic base is built largely on two sectors: community tourism and fishing. As many other actors were supporting recovery in the local fishing industry, Mercy Corps concentrated on revitalising the tourism sector.     

A critical analysis of earthquakes and urban planning in Turkey

The land use plans and policies of developed countries that live with the threat of earthquakes are gaining importance in reducing or eliminating the long‐term threat to people and property. In developing countries, however, these plans and policies seem to increase the level of vulnerability. This paper examines the effects of the earthquakes that have occurred in Turkey since 1992, with a particular focus on urbanisation and planning policies. It is based on extensive surveys carried out on location immediately after the earthquakes in Erzincan and Kocaeli‐Gölcük in 1992 and 1999, respectively. The analysis takes into account several factors, including the height of buildings, geological conditions and the construction period. The authors conclude that land use planning can serve as a very useful instrument for mitigating the extent of disaster damage if it is part of an appropriate planning system. In the case of Turkey, the planning system needs to be reorganised for this purpose.     

Choice and Constraints in Floodplain Occupation: The Influence of Structural Factors on Residential Location in Peninsular Malaysia

In Peninsular Malaysia 'structural' factors are found to influence strongly people's persistent occupation of floodplains. Thus, despite a high level of flood hazard awareness, a high level of pessimism and a high level of expectation of future floods, poorer individuals seldom attempt to leave for more advantageous locations but are instead trapped in their present locations by structural factors such as poverty, low residential and occupational mobility, low educational attainment, traditional land inheritance, government aid, and government disaster preparedness, relief and rehabilitation programmes. These forces exert a strong influence upon individuals and largely control their choice of residential location in response to flood hazards, thereby reinforcing the persistent occupation of floodplains. Structural factors such as lawlessness, rural—urban migration, floodplain encroachment and squatting are also highly influential in leading people to move. Even for those who move, structural factors have largely confined their choice of residential location to urban floodplains.     

There's nowhere to go: counting the costs of extreme weather to the homeless community

People experiencing homelessness are vulnerable to extreme weather in unique ways. The entrenched inequalities that underpin disaster vulnerability are compounded by extreme isolation and the stress of transient living on mental and physical health. However, the impacts of extreme weather on the homeless in Australia are largely undocumented and rarely incorporated in emergency planning. Interviews with and surveys of emergency and homeless services and service users revealed that the primary ramifications of losing shelter and worsening mental health deepen the cycle of homelessness and trauma. Consequently, homeless shelter losses, such as tents, should be included in pre‐ and post‐event impact statistics and subsequent recovery support. Extreme weather response plans should include early triggers and strategies for ‘non‐severe’ weather events, as the homeless community is affected earlier and by a wider range of meteorological conditions. Moreover, this study also explores the benefits of a trauma‐informed response to extreme weather when working with the homeless.     

Citizen participation in disaster recovery projects and programmes in rural communities: a comparison of the Haiti earthquake and Hurricane Katrina

This study investigates predictors of local participation in recovery projects and programmes following Hurricane Katrina in the United States in 2005 and the earthquake in Haiti in 2010. Using two sets of survey data, it examines whether disaster impacts and social capital (social trust and civic engagement) are associated with disaster recovery participation and compares predictors of such engagement in the two locations. Multivariate logistic regression results reveal that physical injuries, limited community mobility, and government trust increase recovery participation in Haiti (n=278), whereas emotional distress and homeownership decrease it. On the Gulf Coast of the US (n=259), physical injuries and higher civic engagement augment recovery participation, while homeownership and age reduce it. The confounding factors of national contexts and post‐disaster time frames might explain the differences in the results. The discussion addresses the relation between country‐specific vulnerability and recovery participation and suggests implications for policy and practice to improve local citizens’ capabilities to participate in sustainable recovery processes.