An Examination of the Decision of Microentrepreneurs to Remain in Urban Flood-prone Areas in Marikina City, Metro Manila (NCR), Philippines

Abstract

Despite the impact of urban flooding on businesses, the choice of microentrepreneurs continuing to stay in flood hazard areas runs counterintuitive to the principles of profitability and sustainability albeit both are the most vulnerable aspects of the business sectors. Existing literature has provided substantial knowledge on the factors affecting an entrepreneur’s choice of operating location but does not go deeper into why entrepreneurs decide to remain and operate in frequently flooded urban areas. A multi-stage cluster sampling technique was used in this study to establish an adequate representation of microentrepreneurs in flood-prone areas of Marikina City in Metro Manila, Philippines, using various statistical tools to evaluate decision factors. The research revealed that component factors such as economic considerations, the microentrepreneur’s socio-spatial relations, and experiences and perception of resilience influence the decision to remain in urban flood-prone areas. Moreover, specific sub-factors under each component factor were identified, which can be grouped into ‘pre-existing’ and ‘learned’ categories, introducing a new location decision model attuned to the dynamics that exists between microentrepreneurs and a natural disaster such as urban flooding. The findings of the study may guide policymakers and urban planners in designing targeted intervention measures that translate to more micro enterprise-responsive disaster risk reduction and management plans. Moreover, by treating microenterprises as separate from the traditional occupations, communities might appreciate the crafting of local land use plans which would successfully improve the overall resilience of this sector in urban flood-prone areas.