The impact of disasters on small business disaster planning: a case study

A major flood in 1997 forced the evacuation of Grand Forks, North Dakota and caused damage of USD 1 billion. Despite this recent disaster there is only marginal evidence of an increase in disaster recovery planning by businesses that experienced the flood. This finding is consistent with the results of other business‐related disaster research. Statistical tests of survey results from 2003 indicate that there is a significantly higher rate of disaster recovery planning in businesses started since the 1997 flood than in businesses started before the flood and still in business. Such an outcome indicates a need for public policy actions emphasizing the importance of disaster planning. Improved disaster planning is an aid to business recovery and the results demonstrate the need for more widespread efforts to improve disaster recovery planning on the part of smaller businesses, even in areas that have recently experienced disasters.