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Assessment of business interruption time due to direct and indirect effects of the Chiapas earthquake on September 7th 2017

Author

Listed:
  • David Ortiz

    (UNAM)

  • Eduardo Reinoso

    (UNAM)

  • Jorge Alberto Villalobos

    (TecNM)

Abstract

After an earthquake, a business often stops operating temporarily or permanently due to direct effects on the building (Initial security protocols and Physical damage to building components) or indirect effects (Suspension of public services, Neighborhood effects, Direct affectations to owner or employees and Contingent business interruption). In this research, we collected data from surveys applied in October and November 2019 to 227 micro-businesses established predominantly in buildings made of masonry or adobe of one and two storyes and located in three of the most damaged areas of Oaxaca by the earthquake of September 7th, 2017 to find out how this incident affected them. It has been observed that, out of the total of the surveyed businesses, 44% had to close for more than three months and that the two main sources of interruption were damages in the structural system or in the non-structural elements of the building and the absence of customers, and that 31% of the businesses that were already in operation considered that they had not yet recovered their productivity. Based on the information obtained from the surveys, it was possible to propose equations to determine the Business Interruption time. Finally, these equations are exemplified with a hypothetical business and the importance of the actions that the owners must take in a timely manner to potentially reduce the interruption time of their economic unit in the event of an earthquake is shown.

Suggested Citation

  • David Ortiz & Eduardo Reinoso & Jorge Alberto Villalobos, 2021. "Assessment of business interruption time due to direct and indirect effects of the Chiapas earthquake on September 7th 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. 108(3), pages 2813-2833, September.
    • Handle: RePEc:spr:nathaz:v:108:y:2021:i:3:d:10.1007_s11069-021-04801-x
    DOI: 10.1007/s11069-021-04801-x
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    References listed on IDEAS

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    1. Kroll, Cynthia A. & Landis, John D. & Shen, Qing & Stryker, Sean, 1991. "Economic Impacts of the Loma Prieta Earthquake: A Focus on Small Businesses," University of California Transportation Center, Working Papers qt05f3382m, University of California Transportation Center.
    2. Adrián Pozos-Estrada & Marcos M. Chávez & Miguel Á. Jaimes & Oriol Arnau & Héctor Guerrero, 2019. "Damages observed in locations of Oaxaca due to the Tehuantepec Mw8.2 earthquake, Mexico," 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. 97(2), pages 623-641, June.
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