Investigating resilience barriers of small and medium-sized enterprises to flash floods: a quantile regression of determining factors

Abstract

ABSTRACTFlash floods continue a trend of costly disasters attributed to changing weather patterns and climate disruptions. Small and Medium-Sized Enterprises (SMEs) are more vulnerable and ill-prepared to flash flooding, compared to their larger counterparts, so they are disproportionately affected by such extreme weather events. This study reports on the results of a quantitative survey of SME owners/managers and employs quantile regression analysis in an attempt to shed light on factors affecting resilience barriers to flash floods. Findings suggest that the effect of organizational size on SME barriers is reduced as barriers increase. In contrast, the effect of organizational age is found to be positive with low magnitudes when barriers are either very low or considerably high in contrast to negative effects when barriers are at moderate levels. A positive influence of the industrial affiliation at all barrier levels is also identified. Previous experience with flash flooding events as well as the effect of profitability are found to have negative impact in most levels of analysis. The assessment highlights the need for targeted intervention and assistance to the various segments of the SME sector through customized guidance and/or ad hoc regulation by focusing on factors explaining barriers to resilience.