Flood vulnerability and economic valuation of small and medium-sized enterprise owners to enhance sustainability

Abstract

Small and medium-sized enterprises (SMEs) play an important role in supporting Indonesia’s economic growth and provide employment for people. Nevertheless, SMEs are most vulnerable when there is a flood. Small and medium sized enterprises are worse off especially after the flood, because they are relatively limited in resources and less resilient. The study aimed at identifying the vulnerability level to floods and analysing the economic valuation of flood mitigation. The population in this study were SMEs located in flood-prone areas in Klaten Regency, Central Java province, Indonesia. This research used a purposive sampling technique with 152 respondents. Data collection was carried out using a direct interview method to business actors with the help of a questionnaire. There were two analytical tools used in this research, including vulnerability index and economic valuation. The results showed that Klaten Regency is located in the upper area vulnerability category of moderate flood. The economic valuation of flood mitigation is IDR 100 000 (USD6.99) to IDR 149 999 (USD10.49). Most SMEs perceive that flood mitigation is the responsibility of the government.

Factors in the disaster mitigation process for micro and small culinary enterprises in Indonesia

“…The higher the level of vulnerability of the business, the higher the risk when there is a disaster or disruption (Isa et al 2021). Isa and Mardalis (2022) define vulnerability as the lack of ability of a business to deal with uncertainty. states that vulnerability is the tendency for a business to be affected by a hazard or potential for change.…”

“…The sensitivity of the culinary business is also influenced by the demographics of the owner or manager, namely gender (Lo et al 2019;Song et al 2016;Sydnor et al 2017), level of education (Lo et al 2019;Orhan 2016;Sydnor et al 2017), business experience (Sydnor et al 2017), competency in managing a business (Isa & Mardalis 2022), and experience dealing with previous disasters (Orhan 2016). Women and entrepreneurs have a negative relationship (Zapata-Huamaní et al 2019).…”

An overview of Volume 14, No 1 (2022)

“…Given that disaster risk management is a priority in policy and governance, we are glad to see several articles analysing the degree to which our systems of care are succeeding in reducing risk and planning for the future. The collection features analysis of multi-issue policy coherence (Zembe, Nemakonde & Chipangura 2022 ), institutional ecosystems (Ichsan 2022 ; Lassa, Nappoe & Sulistyo 2022 ), resilience planning processes (Ghafuri & Koohpaei 2022 ; Nkamisa et al 2022 ; Matshusa & Leonard 2022 ; Raharjo, Sarjana & Safitri 2022 ; Terblanche, De Sousa & Van Niekerk 2022 ; Atanga & Tankpa 2022 ) economic sustainability (Mavhura & Aryal 2022 ; Isa & Mardalis 2022 ), education (Aiyub Kadir & Nurdin 2022 , Dimitrova & Mokhele 2022 ) and communication (Dehghani et al 2022 ), overall development agendas (Mthembu & Nhamo 2022 ; Elum & Lawal 2022 ), insurance (Mushonga & Mishi 2022 ) and the integration of Sustainable Development Goals into risk management (Louw & Esterhuyzen 2022 ).…”