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The Effect of Cash Flow Problems and Resource Intermingling on Small Business Recovery and Resilience After a Natural
Renee D Wiatt1, Yoon G Lee2, Maria I Marshall3
1Department of Agricultural Economics, Family Business Management Specialist, Purdue University, 403 West State Street, West Lafayette, IN 47907 USA.
Abstract:
This study investigated the implications that cash flow problems and resource intermingling between the family and the business had on small business recovery and resilience after a natural disaster. This study contributed to the literature by studying the impact of cash flow problems and resource intermingling on small businesses in two separate periods: right after the natural disaster (period 1) and eight years after the disaster (period 2). Period 1 determined whether the business was in operation directly following Hurricane Katrina. Period 2 investigated success of the small business after Katrina (compared to pre-Katrina success). Results showed that cash flow problems and resource intermingling did not affect operational status directly following Katrina, but did play a role in business resilience in the long run.
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