Many small businesses are unprepared for the devastating impacts of natural disasters. According to a recent survey by FedEx and the American Red Cross, over half of small businesses in the U.S. have not taken adequate steps to ensure they can survive and recover from a disaster.
Survey Findings: Small Businesses Are Unprepared
According to a survey conducted by FedEx Corp and the American Red Cross, more than 50% of small businesses in the United States have not taken any measures to prepare for natural disasters. The survey revealed that:
- 51% of small businesses have never practiced evacuations or other emergency drills.
- 47% have not assigned or communicated employee roles during a disaster.
"Further, while 40% of small businesses do not believe they could fully recover within six months if their business was completely destroyed in a disaster, fewer than one-third (29%) of those surveyed are prepared if a disaster disrupts their business for just one month. Additionally, the majority of small businesses may not fully realize how a disaster could impact one of their greatest resources— their employees. Seventy-seven percent have not taken steps to encourage employees to create disaster preparedness plans for their homes and families."
The Economic Impact of Disasters on Small Businesses
The impact of natural disasters on small businesses can be severe, potentially leading to long-term economic disruption. After Hurricane Katrina, the largest natural disaster in U.S. history, over $2.3 billion in small business loans were issued to approximately 22,000 companies in the affected area. This highlights the importance of disaster preparedness for small businesses.
Rose Flenorl, Manager of Global Citizenship at FedEx Services, explains, "Many small businesses put off disaster preparation because of concerns about lack of resources or expertise. But some simple, inexpensive steps can go a long way toward helping businesses be prepared if disaster strikes."
How Small Businesses Can Prepare
The survey also found that 77% of small businesses would be more likely to take action to prepare for a disaster if they were provided with educational materials. These materials can guide businesses in taking the right steps to protect their operations, employees, and assets during a disaster.
In previous articles, we've discussed how businesses can prepare for specific natural disasters, such as earthquakes and other emergencies. It is important for both business owners and their employees to plan for the unexpected. Preparation can save lives, reduce recovery time, and minimize financial losses.
Take Action Now
If you haven’t already, take the time to prepare your business for potential disasters. Start with simple steps, such as creating an emergency plan, practicing evacuation drills, and encouraging your employees to prepare their own disaster plans at home.
