Does social capital pay off? The case of small business resilience after Hurricane Katrina

Abstract

This article uses objective and subjective measures of small business resilience and multiple categories of social capital pay‐offs to answer two main questions. Does social capital pay off after a natural disaster; and if it does, what type of social capital has the greatest impact on small business resilience? The pay‐off from bridging social capital—receiving support from the community—is what drives both objective and subjective resilience post‐Katrina. The results also show linking capital—support from institutions—can improve economic resilience. Our results provide evidence social capital is a key asset for long‐term resilience for small businesses. Business owners with links to the community and institutions—with more social capital—will be better off when facing a natural disaster.

Variations in employees' perceptions of organizational disaster preparedness

“…For example, the results will provide scholars with a better understanding of the types of public, private and nonprofit organizations that engage in disaster preparedness as well as the kinds of preparedness measures these organizations adopt. This study also continues conversations occurring within the crisis management field that underscore how engaging organizations from the public, private and nonprofit sector can help improve communities' resilience to future disasters (Adekola & Clelland, ; Darkow, ; Torres, Marshall, & Sydnor, ).…”

Eliciting lessons from Small- and Medium-Sized Enterprises (SMEs) for natural disaster resilience planning and recovery during the COVID-19 pandemic:

“…E. Watkins et al, 2008). Research focused upon SME resilience to natural disasters tends to be better established in the literature and offers relevant insights as to the response to and recovery of SMEs (e.g., Runyan, 2006;Torres et al, 2019). This research rarely differentiates microenterprises, which face unique challenges as a sub-set of small enterprises.…”

“…Previous research on SME preparation and mitigation has largely focused on outcomes postevent impact and recovery from natural hazards (Runyan, 2006;Torres et al, 2019). Helgeson et al (2020b) provides a brief review of the literature related to factors studied in relationship to business recovery following natural hazards.…”

Small business strategic management practices and performance: A configurational approach

“…Networks, relationships, and alliances are critical to small businesses in the context of marketing, funding, strategic decision making, and sustainability (Bosma, Van Praag, Thurik, & De Wit, 2004;Hernandez-Carrion et al, 2017;Petrou & Daskalopoulou, 2015;Torres, Marshall, & Sydnor, 2019). Small business owners often cannot rely on the deep pockets of investors or the expertise of a board of directors to guide them formally.…”