Exploring the Benefits of Disaster Preparedness: A Study of Businesses Affected by Hurricane Irma

Abstract

Despite pushes to increase the level of disaster preparedness among businesses, few studies have empirically explored the extent to which businesses benefit from adopting preparedness measures. The present study aims to narrow this research gap by examining whether businesses with higher levels of perceived disaster preparedness experience fewer hurricane impacts and report a higher perceived recovery rating from disasters in comparison to businesses with lower levels of perceived disaster preparedness. Using data gathered from 19 businesses in Florida, United States, affected by Hurricane Irma in 2017, the authors find that businesses perceived they were very prepared for Hurricane Irma. However, businesses with higher perceived preparedness ratings did not always experience fewer hurricane impacts or report a higher perceived recovery rating. Responses from business owners and risk managers provide insights into why higher perceived preparedness ratings did or did not translate into fewer hurricane impacts and a higher perceived recovery rating.