The Effect of Adaptation and Mitigation for Small Businesses Impacted by Hurricane Katrina

Abstract

The following article examines how adaptation and mitigation activities contribute to small business resilience. Resilient businesses are those that survive disasters and surpass their pre-disaster revenue levels. The results of a multivariate probit analysis suggest that pre-Hurricane Katrina mitigation and adaptation activities contributed to business resilience. Additionally, an analysis of financial resources showed that formal and informal loans increased the likelihood that a business would adapt while insurance payments decreased the likelihood that a business would adapt.