Study Says 8 in 10 American Small Businesses Not Ready for Disaster

November 2, 2005

In the wake of Hurricanes Katrina, Rita, and, most recently, Wilma, 79% of American small businesses say they do not have a disaster recovery plan in place, according to a new study from the International Profit Associates Small Business Research Board (IPA SBRB).

Study participants also believe small business is the key to economic recovery after a major disaster such as Hurricane Katrina and Hurricane Rita. More than seven in 10 (71%) said that small business is the key to economic recovery. Only 6% said small business is not the key to economic recovery and 23% were uncertain.

“With small business making up the overwhelming majority of business in the United States, the nation looks to small business to lead economic revival after disasters. Clearly there are opportunities for entrepreneurs and small businesses especially in light of our findings that more than three-quarters of small business is unprepared for a disaster, an unbelievably alarming statistic,” said Gregg Steinberg, president of International Profit Associates, a privately-held provider of management consulting and professional services to small and medium-size businesses in North America. “However, no one is immune from being impacted by a natural disaster or other emergencies, such as a fire. Every small business should have a recovery plan in place that maps the process of getting back to business as quickly and efficiently as possible after a disaster.”

The International Profit Associates Small Business Research Board ascertains and reports the opinions of small business owners and managers on a wide variety of topics related to their own businesses as well as national and international issues that may impact their operations.

Participants in the poll provide feedback on significant issues and allow for real-time insight into the state of small businesses nationwide. The universe of participants is developed from among small businesses across the United States. A total of 325 small business owners and senior managers participated in this IPA SBRB poll. The IPA SBRB study is a voluntary survey conducted via phone and email. The poll was structured and supervised through an independent resource.

The latest information about the IPA Small Business Research Board can be found at www.ipasbrb.com.

Topics Commercial Lines Business Insurance Small Business

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