Philippine Institute for Development Studies disaster impact categories

Damages to the land, equipment and revenue drops have been identified as an important source of financial stress for businesses after disasters. Revenues are expected to fall down due to the less or no sales during and after the disaster occurs. Damaged or loss of stock can create issues in continuity of business. It can cause temporary business closure while structural repairs needed to restore operations usually require large amounts of financial and other resources. Damages to manufacturing equipment and machinery may affected severely and disrupted production. If businesses are not insured or lack of resources for these repairs, survival of business is questionable.

Disruptions after disasters regarding the provision of public and utility services such as electricity, water supply and sewage, fuel, transportations and telecommunications, can be responsible for businesses closing down and can cause population dislocation. Dysfunction in facilities and public infrastructure is an expected effect of disasters requiring business to look at alternative or emergency logistic support to enable business to function. These public infrastructure damage can lead to business closure for extended periods till repairs completed.

Human resources are the prime asset for any organization including MSMEs which have a limited staff in general. Employees of these firms might be the immediate victims of the disaster including deaths and casualties. In addition, labour force might face physical and psychological health effects including injuries and stress. Employees can be vulnerable to the numerous health hazards that prevail in weeks, even months after the event of flood. Water- borne dieses such as diarrhea and cholera are the most common epidemics that can spark after the flood. Employees who may affected severely are under financial distress too. Therefore, availability of manpower is crucial and firms have to consider manpower reinforcement and to support those affected workers to resume their duties at earliest which enable firms to meet targets, respond to spike in demand and resume operations at the shortest time.

A shift in market demand also expected in the short term with sharp increase in the demand only for basic commodities while a drop in many non-essentials. In general, difficulties in distribution, receiving and shipping of products are very common issues after flood situation. As demand side for many products weaken, sales turn over drops drastically resulting MSMEs find it difficult to do accounts payable and ultimately manage their financial balance. This drop-in demand for their products are affected more seriously for MSMEs as majority of them are totally depend on neighbouring markets where the villagers are direct victims of flooding.


Samantha, Gunathilaka. (2018). The Impact of Natural Disasters on Micro, Small and Medium Enterprises (MSMEs): A Case Study on 2016 Flood Event in Western Sri Lanka. Procedia Engineering. 212.