For example, for all respondents, just over a half of small businesses believed that their business would be able to continue even if surrounding businesses were unable to operate or that they would have sufficient funds to cover temporary disruption if surrounding businesses were unable to operate, this did not vary significantly between those in Canterbury or outside the region. However, if the business was to sustain significant physical damage, this would be more likely to affect business continuity with around 25 percent of all respondents indicating that they would be unlikely to restart operations. The impact of difficulties in securing insurance for firms in the Canterbury region was again apparent in terms of securing insurance cover for inability to operate for period of three months with Canterbury firms’ significantly less likely to believe that this cover was obtainable compared with small businesses outside the Canterbury region.
Implications
From the main conclusions we identify some implications, these should be treated as indicative as further on-going research will be required to monitor longer term effects of the Christchurch earthquakes and SME responsiveness to the potential of major crises, whether natural of man-made.
If high levels of vulnerability to major crises, especially natural disasters, are combined with low levels of business continuity planning then a programme of measures to improve SME resilience is warranted. The experience of dealing with the after effects of the Christchurch earthquakes could feed into an awareness raising national; programme with SMEs with examples of business continuity planning and benchmarking of crisis management. As the frequency of crises and the unpredictable events is increasing, such a national programme should be given a high priority.
Whilst the effects of the Christchurch earthquakes were found to be highly variable across all SMEs, both in and outside the Canterbury region; nevertheless, we found that SMEs located in the Canterbury region did demonstrate higher behavioural measures of resilience than those outside the region. This may imply that the learning and experience that is involved from the impact and aftermath of the Christchurch earthquakes has been beneficial to the surviving SMEs. By comparison, those SMEs outside Canterbury do not have the experience of dealing with a disaster and are under-prepared. This gives further justification for a national programme to raise awareness and support to increase the national levels of crisis management planning and preparedness in SMEs.
Lessons could be learned from this unique experience of SME responses in the Canterbury region, from changed behaviour and from dealing with a major natural disaster. There is no doubt that a lot of support has already gone into assistance for SMEs and surviving businesses in Canterbury, as part of the relief effort and response to the Christchurch earthquakes. Some case examples could be developed which would demonstrate how SMEs have responded perhaps with changed management techniques particularly in staff management (in dealing some of the psychological effects) and in maintaining customer relationships and networks.
Further qualitative research is needed which would assist the development of case material and examine in more depth behavioural responses and the role that external linkages and networks play, particularly through the interactions with community support. This report has added insights to the known variable impacts of natural disasters and crises, further research is required to examine how SMEs are best prepared and supported to prepare for the increased incidence of such events.
In an increasingly uncertain and unpredictable world, there is an opportunity to share experience internationally, particularly on the development of national support programmes.
Although natural disasters can be very different, from floods in Queensland to hurricanes in the USA, the effects of such crises on business continuity are similar and there are benefits to be gained through appropriate channels for the sharing of experience with supporting resilient SMEs.
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