Resilience and adaptation of small and medium‐sized enterprises to flood risk

TLDR

Flood events in the UK are increasing in intensity and frequency, yet SMEs often underestimate flood risk, making their resilience a critical societal concern. This study investigates how SMEs adapt to flood risk through community‑level, property‑level, and business‑continuity measures, aiming to inform policy and decision making. Four short case studies of SMEs were conducted to identify their flood‑risk responses and the measures they employ. SMEs implemented diverse property‑level protection and generic business‑continuity measures, responded positively after floods, and the study underscores the importance of accessible cost/benefit information while noting that such adaptations contribute to long‑term building‑stock resilience.

Abstract

Purpose The UK has experienced a number of flood events in recent years, and the intensity and frequency of such events are forecast to further increase in future due to changing climatic conditions. Accordingly, enhancing the resilience of small and medium‐sized enterprises (SMEs) – which form an important segment in a society – to flood risk, has emerged as an important issue. However, SMEs often tend to underestimate the risk of flooding which tends to have a low priority in their business agenda. The purpose of this paper is to undertake an investigation of adaptation to the risk of flooding considering community‐level measures, individual‐level property protection, and business continuity and resilience measures. Design/methodology/approach A total of four short case studies were conducted among SMEs to identify their response to flood risk, and what measures have been undertaken to manage the risk of flooding. Findings It was observed that SMEs have implemented different property‐level protection measures and generic business continuity/risk management measures, based on their requirements, to achieve a desired level of protection. Practical implications SMEs are likely to positively respond to property‐level adaptation following a post‐flood situation. It is important that information such as costs/benefits of such measures and different options available are made accessible to SMEs affected by a flood event. Social implications Implementation of property‐level adaptation measures will contribute towards the long term adaptation of the existing building stock to changing climatic conditions. Originality/value The paper contributes towards policy making on flood risk adaptation and SME decision making, and informs policy makers and practitioners.