Few studies of small businesses have addressed demise in post-disaster environments, and the factors that lead to business demise after natural disasters are not well understood. This study explored demise by interviewing a random sample of small business owners whose businesses survived or met demise following Hurricane Katrina. The goal of this study was to determine whether businesses that met demise could be predicted based on pre-existing characteristics of those businesses and their owners. Findings indicated that businesses owned by women, minorities, and veterans were more likely to meet demise. Owners with more industry experience and older businesses were less likely to meet demise, along with larger businesses (number of employees) and service-based businesses. Businesses that had prior disaster experience and prior cash flow problems were also less likely to meet demise post-Katrina, suggesting that prior experiences with some type of adversity may provide knowledge and insight that aid small business owners during subsequent experiences during disaster preparation, response, and recovery periods. Home-based businesses were also less likely to meet demise, whereas businesses located in coastal counties were more likely to meet demise.
This article uses objective and subjective measures of small business resilience and multiple categories of social capital pay‐offs to answer two main questions. Does social capital pay off after a natural disaster; and if it does, what type of social capital has the greatest impact on small business resilience? The pay‐off from bridging social capital—receiving support from the community—is what drives both objective and subjective resilience post‐Katrina. The results also show linking capital—support from institutions—can improve economic resilience. Our results provide evidence social capital is a key asset for long‐term resilience for small businesses. Business owners with links to the community and institutions—with more social capital—will be better off when facing a natural disaster.
a b s t r a c tThis article separates the decision to be certified organic into the decision to use organic practices and the subsequent decision to certify those practices, using data from a survey of US fruit and vegetable producers. We document that many producers are using organic practices but choosing not to certify. Philosophical beliefs and perceived risk of losses due to disease, weeds, and insects have the largest impact on the decision to use organic practices. Producers who use organic practices and direct market are less likely to certify. Moreover, we find that the certification process discourages certification.
In June to Oct. 2008, a U.S. floriculture survey was conducted to examine the factors affecting growers' willingness to adopt sustainable practices. The factors affecting adoption of sustainable practices were evaluated in five areas: environmental regulations, customer value, growers' attitudes toward sustainability, age, and operation size. A logistic regression model was used to examine factors affecting growers' adoption of sustainable practices. Nearly two-thirds (65.2%) of respondents thought sustainability was very important to the environment. Similarly, more than half (63%) of the respondents had sustainable practices in their operations. Although respondents had positive attitudes toward sustainability and the environment, these positive attitudes alone were unable to predict adoption behaviors. The two most important factors that affected adoption of sustainable practices were the concerns about implementation and the risk perceived by growers. Neither perceived customer value nor the stringency of state regulations affected the adoption of sustainable practices. The results from this study provide original insight into growers' views of sustainability and identify the educational assistance needed by growers to overcome the factors affecting their adoption of sustainable practices.
Management decisions owners make to prepare their small businesses for hurricane events are strategic decisions that can affect the sustainability of their businesses. Therefore, there is value in understanding who prepares, what they do to protect their businesses, and in predicting these decisions from known demographics such as race, gender and business size. This study characterized the owners and businesses that did or did not undertake hurricane preparations and suggests education and policy strategies to assist these business owners. Small business owners in southern Mississippi participated in telephone interviews that provided data for the logit analyses in this study. The preparedness activities most practiced were risk transfer and structural mitigation. The least practiced activities were those related to protection of business operations and non-structural assets. Whether or not the business was located in a coastal county subject to surge highly predicted the use of certain types of preparation. Results demonstrate that preparation activities varied depending on the situation of the business (e.g. size, prior experience with disasters, property ownership) and characteristics of the owner (e.g. gender and education). However, differing threats to the business related to location (e.g. surge
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