IDEAS home Printed from https://ideas.repec.org/a/spr/nathaz/v79y2015i1p331-354.html
   My bibliography  Save this article

Predicting small business demise after a natural disaster: an analysis of pre-existing conditions

Author

Listed:
  • Maria Marshall
  • Linda Niehm
  • Sandra Sydnor
  • Holly Schrank

Abstract

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. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Maria Marshall & Linda Niehm & Sandra Sydnor & Holly Schrank, 2015. "Predicting small business demise after a natural disaster: an analysis of pre-existing conditions," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 79(1), pages 331-354, October.
    • Handle: RePEc:spr:nathaz:v:79:y:2015:i:1:p:331-354
    DOI: 10.1007/s11069-015-1845-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11069-015-1845-0
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11069-015-1845-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kathryn Stafford & Vibha Bhargava & Sharon Danes & George Haynes & Katherine Brewton, 2010. "Factors Associated with Long-Term Survival of Family Businesses: Duration Analysis," Journal of Family and Economic Issues, Springer, vol. 31(4), pages 442-457, December.
    2. Maria Marshall & Holly Schrank, 2014. "Small business disaster recovery: a research framework," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 72(2), pages 597-616, June.
    3. Winter, Mary & Danes, Sharon M. & Koh, Sun-Kang & Fredericks, Kelly & Paul, Jennifer J., 2004. "Tracking family businesses and their owners over time: panel attrition, manager departure and business demise," Journal of Business Venturing, Elsevier, vol. 19(4), pages 535-559, July.
    4. Kalnins, Arturs & Williams, Michele, 2014. "When do female-owned businesses out-survive male-owned businesses? A disaggregated approach by industry and geography," Journal of Business Venturing, Elsevier, vol. 29(6), pages 822-835.
    5. Holly Schrank & Maria Marshall & Adrienne Hall-Phillips & Renee Wiatt & Nicole Jones, 2013. "Small-business demise and recovery after Katrina: rate of survival and demise," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 65(3), pages 2353-2374, February.
    6. Nina S N Lam & Helbert Arenas & Kelley Pace & James LeSage & Richard Campanella, 2012. "Predictors of Business Return in New Orleans after Hurricane Katrina," PLOS ONE, Public Library of Science, vol. 7(10), pages 1-8, October.
    7. Brewton, Katherine E. & Danes, Sharon M. & Stafford, Kathryn & Haynes, George W., 2010. "Determinants of rural and urban family firm resilience," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 155-166, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tomoko Hiramatsu & Maria I. Marshall, 2018. "The Long-Term Impact of Disaster Loans: The Case of Small Businesses after Hurricane Katrina," Sustainability, MDPI, vol. 10(7), pages 1-15, July.
    2. David Nortes Martínez & Frédéric Grelot & Pauline Brémond & Stefano Farolfi & Juliette Rouchier, 2024. "Effects of flood‐induced financial stress on the viability of a cooperative production system and its farmers: A multilevel study," Post-Print hal-04443707, HAL.
    3. Alex Y. Lo & Alice S. Y. Chow & Shuwen Liu & Lewis T. O. Cheung, 2019. "Community business resilience: adaptation practice of micro- and small enterprises around the Pearl River Estuary," Climatic Change, Springer, vol. 157(3), pages 565-585, December.
    4. Sandra Sydnor & Linda Niehm & Yoon Lee & Maria Marshall & Holly Schrank, 2017. "Analysis of post-disaster damage and disruptive impacts on the operating status of small businesses after Hurricane Katrina," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 85(3), pages 1637-1663, February.
    5. Paul Hudson & Annegret H. Thieken, 2022. "The presence of moral hazard regarding flood insurance and German private businesses," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 112(2), pages 1295-1319, June.
    6. Maria I. Marshall & Holly L. Schrank, 2020. "Sink or Swim? Impacts of Management Strategies on Small Business Survival and Recovery," Sustainability, MDPI, vol. 12(15), pages 1-21, August.
    7. Sonja Radas & Bruno Skrinjaric, 2022. "Girl Power: Creating More with Less," Working Papers 2203, The Institute of Economics, Zagreb.
    8. Meltzer, Rachel & Ellen, Ingrid Gould & Li, Xiaodi, 2021. "Localized commercial effects from natural disasters: The case of Hurricane Sandy and New York City," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    9. Hiramatsu, Tomoko & Marshall, Maria I., 2017. "The effect of Small Business Administration (SBA) Disaster Loans on Revenues of Small Businesses in Mississippi after Hurricane Katrina," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252713, Southern Agricultural Economics Association.
    10. Mahto, Raj V. & Llanos-Contreras, Orlando & Hebles, Melany, 2022. "Post-disaster recovery for family firms: The role of owner motivations, firm resources, and dynamic capabilities," Journal of Business Research, Elsevier, vol. 145(C), pages 117-129.
    11. Takahiro Yabe & Yunchang Zhang & Satish Ukkusuri, 2020. "Quantifying the Economic Impact of Extreme Shocks on Businesses using Human Mobility Data: a Bayesian Causal Inference Approach," Papers 2004.11121, arXiv.org.
    12. Jenni Dinger & Michael Conger & David Hekman & Carla Bustamante, 2020. "Somebody That I Used to Know: The Immediate and Long-Term Effects of Social Identity in Post-disaster Business Communities," Journal of Business Ethics, Springer, vol. 166(1), pages 115-141, September.
    13. Fan Li & Lin Wang & Zhigang Jin & Lifang Huang & Bo Xia, 2020. "Key factors affecting sustained business operations after an earthquake: a case study from New Beichuan, China, 2013–2017," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 104(1), pages 101-121, October.
    14. Alex Y. Lo & Shuwen Liu & Alice S. Y. Chow & Qing Pei & Lewis T. O. Cheung & Lincoln Fok, 2021. "Business vulnerability assessment: a firm-level analysis of micro- and small businesses in China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 108(1), pages 867-890, August.
    15. Khlystova, Olena & Kalyuzhnova, Yelena & Belitski, Maksim, 2022. "The impact of the COVID-19 pandemic on the creative industries: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 139(C), pages 1192-1210.
    16. Orlando Llanos-Contreras & Manuel Alonso-Dos-Santos & Domingo Ribeiro-Soriano, 2020. "Entrepreneurship and risk-taking in a post-disaster scenario," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 221-237, March.
    17. Guo, Ziyi & Wang, Yan, 2023. "Benchmarking Plans for Community-based Small Business Resilience across Gulf Coast Counties," SocArXiv 675ty, Center for Open Science.
    18. Renee D. Wiatt & Yoon G. Lee & Maria I. Marshall & Virginia S. Zuiker, 2021. "The Effect of Cash Flow Problems and Resource Intermingling on Small Business Recovery and Resilience After a Natural Disaster," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 203-214, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria I. Marshall & Holly L. Schrank, 2020. "Sink or Swim? Impacts of Management Strategies on Small Business Survival and Recovery," Sustainability, MDPI, vol. 12(15), pages 1-21, August.
    2. Stafford, Kathryn & Danes, Sharon M. & Haynes, George W., 2013. "Long-term family firm survival and growth considering owning family adaptive capacity and federal disaster assistance receipt," Journal of Family Business Strategy, Elsevier, vol. 4(3), pages 188-200.
    3. Sandra Sydnor & Linda Niehm & Yoon Lee & Maria Marshall & Holly Schrank, 2017. "Analysis of post-disaster damage and disruptive impacts on the operating status of small businesses after Hurricane Katrina," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 85(3), pages 1637-1663, February.
    4. McDonald, Tia Michelle & Florax, Raymond & Marshal, Maria I., 2014. "Informal and Formal Financial Resources and Small Business Resilience to Disasters," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170332, Agricultural and Applied Economics Association.
    5. Mahto, Raj V. & Llanos-Contreras, Orlando & Hebles, Melany, 2022. "Post-disaster recovery for family firms: The role of owner motivations, firm resources, and dynamic capabilities," Journal of Business Research, Elsevier, vol. 145(C), pages 117-129.
    6. Maria Marshall & Holly Schrank, 2014. "Small business disaster recovery: a research framework," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 72(2), pages 597-616, June.
    7. Imen Mzid & Nada Khachlouf & Richard Soparnot, 2019. "How does family capital influence the resilience of family firms?," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 249-277, June.
    8. Anita A. Pena & Sammy Zahran & Anthony Underwood & Stephan Weiler, 2014. "Effect of Natural Disasters on Local Nonprofit Activity," Growth and Change, Wiley Blackwell, vol. 45(4), pages 590-610, December.
    9. Czakon, Wojciech & Hajdas, Monika & Radomska, Joanna, 2023. "Playing the wild cards: Antecedents of family firm resilience," Journal of Family Business Strategy, Elsevier, vol. 14(1).
    10. Renee D. Wiatt & Yoon G. Lee & Maria I. Marshall & Virginia S. Zuiker, 2021. "The Effect of Cash Flow Problems and Resource Intermingling on Small Business Recovery and Resilience After a Natural Disaster," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 203-214, March.
    11. Justo, Rachida & DeTienne, Dawn R. & Sieger, Philipp, 2015. "Failure or voluntary exit? Reassessing the female underperformance hypothesis," Journal of Business Venturing, Elsevier, vol. 30(6), pages 775-792.
    12. Lifang Huang & Lin Wang & Jie Song, 2018. "Post-Disaster Business Recovery and Sustainable Development: A Study of 2008 Wenchuan Earthquake," Sustainability, MDPI, vol. 10(3), pages 1-22, February.
    13. Fan Li & Lin Wang & Zhigang Jin & Lifang Huang & Bo Xia, 2020. "Key factors affecting sustained business operations after an earthquake: a case study from New Beichuan, China, 2013–2017," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 104(1), pages 101-121, October.
    14. Holly Schrank & Maria Marshall & Adrienne Hall-Phillips & Renee Wiatt & Nicole Jones, 2013. "Small-business demise and recovery after Katrina: rate of survival and demise," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 65(3), pages 2353-2374, February.
    15. Jennifer Johnson Jorgensen & Diane Masuo & Linda Manikowske & Yoon Lee, 2020. "The Reciprocal Involvement of Family Business Owners and Communities in Business Success," Sustainability, MDPI, vol. 12(10), pages 1-14, May.
    16. Diana Liverman, 2016. "U.S. National climate assessment gaps and research needs: overview, the economy and the international context," Climatic Change, Springer, vol. 135(1), pages 173-186, March.
    17. Matthias Klumpp & Dominic Loske, 2021. "Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    18. Djomo Choumbou Raoul Fani & Ukpe Udeme Henrietta & Emmanuel Njock Oben & Donald Denen Dzever & Onyeje Hephzibah Obekpa & Auguste Tamba Nde & Mohamadou Sani & Mbong Grace Annih & Dontsop Nguezet Paul M, 2021. "Assessing the Performance and Participation among Young Male and Female Entrepreneurs in Agribusiness: A Case Study of the Rice and Maize Subsectors in Cameroon," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    19. Peterson, Preston & Distelberg, Brian J., 2011. "Differentiating value orientations and unity in values as predictors of varying family business system processes," Journal of Family Business Strategy, Elsevier, vol. 2(4), pages 207-219.
    20. Maura Pozzi & Carlo Pistoni & Silvio Carlo Ripamonti & Amalia De Leo, 2023. "Generation and Gender Differences in Family Businesses: A New Psychological Perspective," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 919-934, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:nathaz:v:79:y:2015:i:1:p:331-354. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.