Survival and success of family‐owned small businesses after hurricane Katrina: Impact of disaster assistance and adaptive capacity

Abstract

The study's purpose is to examine the relative importance of direct disaster assistance to family‐owned small firms on their survival and success while considering the components of their adaptive capacity after experiencing Hurricane Katrina. This study employed data from the 2013 and 2015 Small Business Survival and Demise after a Natural Disaster Project (SBSD), a project funded by the National Science Foundation. The logistic regression results show that family businesses with SBA loans (or loan guarantees) were significantly more likely to survive. In addition, family businesses where household and family issues were more frequently in conflict with work demands were more likely to survive. On the other hand, the OLS regression results indicate that family businesses with more stress and more family–business conflict were less likely to succeed.

The Effect of Cash Flow Problems and Resource Intermingling on Small Business Recovery and Resilience After a Natural Disaster

“…The Sustainable Family Business Model (SFBM) has been the theoretical framework for many small and family business studies since its creation (Stafford et al 1999 ). However, for natural disaster research, the family is often left out of the analysis (Haynes et al 2018 ). Our research makes a contribution to the literature by examining the influences of family and business on small business recovery and resilience after a natural disaster.…”

Business Survival, a Literary Review of Internal and External Determinants

“…Finally, consistent with the Organizational Ecology perspective, survival depends on finance, firms with subsidies and banking loans are more likely to survive the coming year, for that reason, local supportive policies can certainly enhance the survival chance of some firms, particularly, they can help older firms to mitigate the impact of competition effects (He and Yang, 2015;Smith et al, 2018;Haynes et al, 2019).…”

NIST-NOAA survey instrument for business disruption and recovery associated with extreme events:

“…Considering how dependent most communities are on governmental services both pre-and post-disaster, its role in the economic recovery of a community cannot be ignored (Tierney, 2007). Haynes et al (2019) found that family-owned businesses that received SBA loans were more likely to survive. However, Meeks (2019) found that there are limited paths for financing disaster recovery.…”