The impact of social networks of historically underrepresented group operators (HUGOs) business recovery

Abstract

While Historically Underrepresented Group Operators (HUGOs) businesses typically depend on social networks for disaster recovery, this aspect remains inadequately researched. This research investigates whether leveraging particular social networks (bonding, bridging, and linking) to obtain financial and informational access influences small business perceptions of recovery. Data was collected through a survey of 200 businesses in Salt Lake City, UT affected by the COVID-19 pandemic and analyzed using logistic regression. The findings indicate that: (1) small businesses that utilized bonding, bridging, or linking networking experienced negative recovery; however (2) HUGOs that utilized linking networks were more likely to experience a positive recovery than non-HUGOs. The research underscores the importance of diversifying social networking channels for successful HUGO business recovery and points to the need for economic recovery programs that build this networking capacity.