ACCI Conference 2017

Using data from the 2013 Small Business Survival and Demise after a Natural Disaster Project (SBSD), this study investigated factors predicting business sustainability after a natural disaster (Hurricane Katrina). In particular, this study focused on whether financial intermingling of resources influences survival of a family firm after a disaster. The results of the logit model indicate that dipping into household savings was negatively associated with business survival. In addition, physical damage had a statistically significant effect on business survival. The logit results also show that pre-disaster revenue and being in the service industry increased the likelihood that businesses would be operating 8 years after Hurricane Katrina. This study concludes that financial intermingling and physical damage are significant predictors of business survival after a disaster.