Factors in the disaster mitigation process for micro and small culinary enterprises in Indonesia

Abstract

Coronavirus disease 2019 (COVID-19) has predisposed most business activities, including the culinary business. The higher the vulnerability rating of a business, the more significant the risk. This study aims to analyse the vulnerability of businesses based on the dimensions of exposure, sensitivity and adaptive capacity to determine priority factors in disaster risk mitigation in order to maintain business continuity. This research was conducted in Surakarta City, Central Java province, Indonesia. The sample was selected using purposive random sampling based on business experience of at least two years, and were not hawkers. Data collection was carried out through structured interviews. This study utilised a qualitative approach using an index. The vulnerability model was developed to assess the vulnerability of culinary businesses to COVID-19. COVID-19 is a threat in the health industry from the macro external environment of business. It is considered the exposure dimension. The sensitivity dimension consists of business characteristics, business owner-manager demographics, and product and supplier characteristics. The demographic dimension of the business owner-manager has high vulnerability and has a high contribution to the sensitivity variable as the most vulnerable variable. The adaptive capacity dimension consists of human capital, economic capital, institutional capital, managerial capital, and supply chain capital. Managerial competencies are an adaptive capacity dimension that has a high vulnerability. The vulnerability of business to the threat of the COVID-19 pandemic is a model for culinary business managers and owners in determining priority factors in disaster risk mitigation in order to maintain business continuity.

Contribution: This study analysed the vulnerability of culinary businesses for micro and small businesses. Low vulnerability means high resilience. Business resilience is conceptualised as a production function that is predisposed by various combinations of inputs from exposure, sensitivity, and adaptive capacity variables.