Identifying the Effective Factors on the Sustainability of Small Businesses in Earthquake-Stricken Areas of Kermanshah Province

Document Type : Research Paper

Authors

1 Department of Management and Entrepreneurship, Faculty of Economics and Entrepreneurship, Razi University, Kermanshah, Iran.

2 Disaster & Emergency Management, Faculty of Liberal Arts & Professional Studies, York University, Toronto, Canada

Abstract

Earthquake is one of the most important and destructive natural disasters that can disrupt the business process and cause a long interruption affecting the livelihoods and income of the survivors. The purpose of this study was to investigate and identify not only the ways in which small businesses are restored and damaged but also their effective factors after the earthquake of 2017 in Kermanshah. The research is a kind of qualitative type based on grounded theory. The study population consisted of the owners of damaged and destroyed urban and rural businesses as well as government officials in Kermanshah province; earthquake-prone areas. The sampling method was a theoretical one using targeted and snowball techniques. Accordingly, 56 interviews were conducted with urban and rural business owners and government officials. Data were collected using semi-structured interviews and thematic analysis using Strauss and Corbin strategy. Long-term researcher engagement methods, triangulation method and member control technique were used in order to evaluate the validity of the research. The reliability of the study was calculated using Holsti's formula which was 82%. Inductive Content Analysis Results of Interview Data, Through Three Open, Axial, and Selective Coding Procedures, to Identify and summarize factors affecting small business sustainability after the earthquake crisis based on grounded theory, including 263 Codes, 52 concepts and 14 subcategories, with the axial category included. Based on the findings of the study, the primacy or synchronization of the reconstruction of damaged and demolished businesses with other aspects of post-crisis reconstruction could provide the basis for the livelihoods of the survivors to continue.                   
Extended Abstract
1-Introduction
 The earthquake is one of the most significant and devastating natural disasters that can disrupt the business process for a long time and affect the livelihoods and income of the survivors. Therefore, one of the most important aspects of post-disaster recovery is to rebuild the affected small businesses and keep them running. After the earthquake crisis, the re-creation of damaged and destroyed small businesses is a complex and well-deserved study in this field. Accordingly, how small businesses are re-created due to the importance they play in the livelihoods and income of traumatic survivors has been a major challenge in disaster towns and villages. Choosing the right approach based on the economic, social and cultural conditions of the affected community, is very important. In fact, the overall goal of rebuilding and rehabilitating a disadvantaged community will be achieved when, in addition to revitalizing other parts of the community, disadvantaged businesses are re-established. However, despite the interest of social science researchers in the long-term effects of natural disasters on affected businesses and the factors affecting their regeneration, relatively little systematic research has been conducted on the processes and outcomes associated with the regeneration of affected businesses. Moreover, the role of business regeneration in the reconstruction process has been underestimated, and due to time constraints, all efforts by officials and executives to restructure have focused on accelerating physical restructuring in the least time, which reduces the quality. As a result, the category of business regeneration has been neglected. In this regard, the subject of the present study is an important part of post-disaster recreation societies, unfortunately the complex dimensions of which is unknown in the country. Focusing on physical reconstruction, usually during the disaster, is usually the focus of reconstruction planners and officials. Besides, the issue of business regeneration has been neglected and underestimated. As a result of the Kermanshah 2017 earthquake, many small town and rural businesses which used to be instrumental in providing services to citizens were severely affected. In fact, did they not only lose their business market but also they were disrupted in their operations. Based on these interpretations, the present study was conducted to investigate and identify the regeneration and sustainability of damaged small businesses and the factors affecting their regeneration after the 2017 earthquake of Kermanshah.
2-Materials and Methods
 The research is a kind of qualitative one which is based on grounded theory. The study population includes the owners of damaged and destroyed businesses in urban and rural areas, as well as government officials in earthquake-prone areas of Kermanshah province. The sampling was done theoretically using targeted snowball techniques. The sample size was dependent on theoretical data saturation. Accordingly, 56 interviews were conducted with different urban and rural business owners and government officials. The data were collected using in-depth semi-structured interviews and thematic analysis using Straus and Corbin strategy. Long-term researcher involvement methods, triangulation method and member control technique were used to assess the validity of the research. Reliability of the study was calculated using Holste's formula which was 82%.
 3-Results and Discussion
 The results of inductive content analysis of interview data, through three open, axial, and selective coding procedures, to formulate a Model for the reconstruction and sustainability of small businesses after the earthquake crisis based on grounded theory, including 263 codes, 52 concepts, and 14 the category led to the axial category. The results of the content analysis of the interviews resulted in the identification and categorization of seven categories of factors affecting the regeneration and sustainability of small businesses including managerial and economic, cultural and social factors, regulatory and enforcement, legal, individual, infrastructure, information and awareness. In addition, the strategies recreating affected businesses include infrastructure, motivational planning, management requirements, and supportive planning. The repercussions and non-repercussions of disaster-stricken businesses, respectively, include the positive repercussions, such as opportunity-threatening, returning to life and hoping among the affected and increased employment and migration. Besides, the negative consequences of non-re-employment jobs include intensifying traumatic stress, exacerbating poverty and rising unemployment, marginalization and migration, exacerbating social damage and lack of investment due to the lack of stability in earthquake-prone areas.
4-Conclusion
 The findings reveal that prioritizing or simultaneously recreating affected businesses in earthquake-prone areas with other aspects of post-crisis reconstruction can provide the basis for sustaining businesses, sustaining livelihoods, and earning survivors' attention and focusing on factors affecting recreation. Moreover, the sustainability of the affected businesses will facilitate and accelerate their regeneration process.

Keywords


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