Building Disaster Resilience in Small and Mid-Size Businesses

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1 Building Disaster Resilience in Small and Mid-Size Businesses Jon Philipsborn Climate Adaptation Director - Americas September 13, 2016

2 The Role of Small Businesses in a Community and in Disaster Recovery Small and Mid-Size Businesses are: Employers Revenue generators Community members Small businesses are vulnerable, by nature, and can be very susceptible to disaster events Post disaster, cities and communities cannot fully recover until small businesses come back Context: 1.17 Million employer businesses in Canada (2015*) 1.14M 97.9 percent were small (b/w 1-99 employees) 21, percent were medium-sized (b/w ) 2, percent were large (greater than 500) Nova Scotia: ~25,000 small ; 443 medium Govt of Canada Innovation, Science and Economic Development 2

3 Disaster Resilience Survey of Small and Medium Sized Enterprises Designed survey based on Disaster Resilience Scorecard and applied to businesses on six commercial corridors Measured preparedness and resilience of individual businesses and corridors Provided training and enhanced communications and collaboration between City and businesses 3

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5 Number of Businesses Project Overview Survey developed based upon Ten Essentials for Disaster Risk Reduction Focus: Six Corridors in New Orleans Focus Group on Scorecard: Businesses, Associations, Government Representatives Pilot Test Scorecard Conducted over 200 Interviews Visited each business up to 3 times Goal:60%; Achieved: 63% % Participation by % of Business 64% 47% 66% 65% 75% Out of Business Non-Surveyable Not Interested/ Non- Responsive Survey Collected Training Conducted by Corridor 392 Businesses Identified 121 Not Interested/ Non- Responsive 51 Out-of- Business 12 Non- Surveyable 208 Surveys Collected 5

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7 Survey Topics Cover Sheet (Characteristics) 1. Previous Disaster History 2. Awareness of Potential Disasters and Impacts Perceived risk, place in supply chain, role in community 3. Disaster Preparedness Emergency plan, awareness of programs to assist post-disaster 4. During a Disaster Confidence in insurance, reliance on utilities, back-up systems, mitigation efforts, employee evacuation and communication 5. Recovery Efforts and Building Back Better Returning after evacuation, programs for rebuilding 7

8 Key Findings Vulnerability remains high Risk Profile High dependencies Low connectivity Disaster preparedness is low Preparedness higher for more established businesses Despite recognition of vulnerabilities, little action has been taken Emergency plans are not common Some champions exist that can help mentor others High desire and need for disaster risk reduction awareness Different requirements for owners versus renters 8

9 Major Themes At least 1/3 of businesses reported having never been impacted by a disaster 65% of businesses said they are dependent on other businesses while 75% said that businesses are not dependent on them The ability to maintain a sufficient inventory during a disaster increases a business resilience Less than half of businesses have an emergency plan Only 18% of businesses surveyed have an awareness of natural disaster programs 87% of respondents have confidence in their insurance 9

10 Major Themes 95% of respondents are dependent upon power, 86% are dependent upon water to operate their business backup systems are not common, with fewer in newer businesses Most businesses are not aware or knowledgeable of green infrastructure Business pre-katrina were twice as likely to take storm/flood-proofing measures 25% of Individual/Partnerships have taken storm/flood-proofing measures 1/3 of businesses have an evacuation plan 75% of Individual/Partnerships do not have an evacuation plan 10

11 Recommendations Recommendations provided at three levels: Business Broken down for owners and renters/leasers Business Corridor City Recommendations ranged from planning and operations, to training and awareness, to infrastructure upgrades 11

12 In Summary Vulnerability exists for small/mid-size businesses in New Orleans survey process, findings, and recommendations have high applicability to other cities More recently established businesses are less likely to be prepared Resilient Champions exist! Need to better tap into them. Some recommendations to improve disaster preparedness could be easily accomplished This study is a snapshot in time, but can help inform decision-making at the business, corridor, and City levels in order to increase preparedness and resilience for all. 12

13 Thank You! Jon Philipsborn Name Title Thank You!