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Building disaster-resilient micro enterprises in the developing world.

Sameer Prasad1, Hung-Chung Su2, Nezih Altay3

  • 1Professor of Supply Chain and Operations Management at the University of Wisconsin - Whitewater, College of Business and Economic, United States.

Disasters
|December 30, 2014
PubMed
Summary
This summary is machine-generated.

Family-owned micro enterprises can build resilience to disaster shocks through cognitive preparation, continuous learning, and social capital. This model helps assess their survival viability in developing economies.

Keywords:
disasterdisruptionhumanitarianmicro enterprisesupply chain

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Area of Science:

  • Business Management
  • Disaster Resilience
  • Informal Economy Studies

Background:

  • Family-owned micro enterprises are vital to developing economies, yet vulnerable to supply chain disruptions from disasters.
  • Disaster-related shocks can lead to the failure of these crucial economic entities.
  • Existing research often overlooks the specific vulnerabilities of micro enterprises in disaster contexts.

Purpose of the Study:

  • To develop a model for enhancing the resilience of micro enterprises in developing countries against disaster-related shocks.
  • To identify key factors that enable micro enterprises to moderate the impact of supply chain turbulence.
  • To provide a framework for assessing the disaster survival viability of micro enterprises.

Main Methods:

  • Extensive literature review on micro enterprise resilience and disaster management.
  • Analysis of case examples from humanitarian agency documents on disaster relief in India.
  • Development of a conceptual model based on identified resilience-building factors.

Main Results:

  • The study proposes a model where cognitive preparation, continuous learning, and social capital (cognitive, relational, structural) enhance micro enterprise resilience.
  • These factors enable micro enterprises to better moderate the effects of disaster-related supply chain shocks.
  • The model offers a preliminary basis for developing metrics to benchmark and assess enterprise viability.

Conclusions:

  • Micro enterprises can proactively build resilience to survive disasters by focusing on cognitive and social strategies.
  • The proposed model offers a novel approach to understanding and strengthening informal sector businesses against external shocks.
  • Further research can utilize this model to create practical tools for disaster preparedness and support for micro enterprises.