Abstract:
The direct and indirect impacts of natural hazards are affecting trade activities and their
stability all over the world. Small and medium-sized entrepreneurs (SMEs) are affected
comparatively higher than large scaled entrepreneurs in Sri Lanka, as they are relatively
resource necessitated and less able to recover from the impacts. The present study
assesses the detrimental experiences with flooding and will provide valuable knowledge
for fostering entrepreneurial resilience in future events. Thus, this study aimed to
investigate the full range of both long-term and short-term impacts flooding experienced
by SMEs in the Ratnapura Divisional Secretariat, Sabaragamuwa Province, Sri Lanka
following the floods of May 2017. The flood-affected 500 SMEs were surveyed during the
study. The optimum sample number for the survey was calculated by Cochran formula,
and 96 SMEs were randomly selected from the flood affected SMEs. Primary and
secondary data were collected in preparing the five-point Likert scale questionnaire that
was carried out individually with respondents of each SMEs. The Relative Importance
Index (RII) was used to rank the impacts on SMEs. The main finding in this study
within short-term impacts is that the stocks were severely damaged (RII=0.891) and
following that property damage (RII=0.833) is highly affected to SMEs. Under Longterm
impacts, disrupted cash flow (RII=0.858) and structural damages (RII=0.795)
extremely affected the SMEs. Since flooding has seriously damaged the public infrastructure
system, entrepreneurs have to obtain alternate or emergency logistic support
from the government as well as insurance claims to run their operations. Therefore, the
findings of this study propose some strategic plan and policy framework and adaptations
for disaster risk reduction among SMEs in Sri Lanka.
