Original Research

Flood vulnerability and economic valuation of small and medium-sized enterprise owners to enhance sustainability

Muzakar Isa, Ahmad Mardalis
Jàmbá: Journal of Disaster Risk Studies | Vol 14, No 1 | a1306 | DOI: https://doi.org/10.4102/jamba.v14i1.1306 | © 2022 Muzakar Isa, Ahmad Mardalis | This work is licensed under CC Attribution 4.0
Submitted: 24 February 2022 | Published: 28 September 2022

About the author(s)

Muzakar Isa, Department of Management, Faculty of Economic and Business, Muhammadiyah University of Surakarta, Surakarta, Indonesia
Ahmad Mardalis, Department of Management, Faculty of Economic and Business, Muhammadiyah University of Surakarta, Surakarta, Indonesia


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Abstract

Small and medium-sized enterprises (SMEs) play an important role in supporting Indonesia’s economic growth and provide employment for people. Nevertheless, SMEs are most vulnerable when there is a flood. Small and medium sized enterprises are worse off especially after the flood, because they are relatively limited in resources and less resilient. The study aimed at identifying the vulnerability level to floods and analysing the economic valuation of flood mitigation. The population in this study were SMEs located in flood-prone areas in Klaten Regency, Central Java province, Indonesia. This research used a purposive sampling technique with 152 respondents. Data collection was carried out using a direct interview method to business actors with the help of a questionnaire. There were two analytical tools used in this research, including vulnerability index and economic valuation. The results showed that Klaten Regency is located in the upper area vulnerability category of moderate flood. The economic valuation of flood mitigation is IDR 100 000 (USD6.99) to IDR 149 999 (USD10.49). Most SMEs perceive that flood mitigation is the responsibility of the government.


Keywords

flood risk; willingness to pay; economic valuation; SME’s; vulnerability

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