Small and Medium Enterprises (SMEs) are considered the backbone of the economy, contributing significantly to job creation and economic growth. However, SMEs are also vulnerable to various risks, including natural calamities such as hurricanes, earthquakes, floods, and wildfires. Natural calamities can devastate SMEs, with consequences ranging from damage to property and infrastructure to loss of lives and livelihoods. This editorial will explore the survival strategies for SMEs amidst natural calamities.

Preparedness is key to surviving natural calamities. SMEs should have a disaster preparedness plan that outlines the steps to be taken before, during, and after a natural calamity. The plan should cover all aspects of the business, including human resources, finance, operations, and communication. The plan should also include an inventory of assets and equipment and a list of emergency contacts.

One critical aspect of the disaster preparedness plan is insurance. SMEs should ensure adequate insurance coverage for their business operations, including property damage, business interruption, and liability. Insurance coverage can help SMEs to recover quickly from the effects of a natural calamity, enabling them to resume operations and prevent financial ruin.

SMEs should also invest in risk reduction measures to minimize the impact of natural calamities. For instance, SMEs can invest in flood-proofing measures, such as installing flood barriers and raising equipment and inventory above flood levels. SMEs located in earthquake-prone areas can reinforce their buildings and equipment to minimize damage from seismic activity.

Communication is also critical in surviving natural calamities. SMEs should establish communication channels with employees, customers, suppliers, and other stakeholders before, during, and after a natural calamity. The communication channels should be reliable and robust and should include alternative communication methods in case of disruption to regular channels. SMEs should also establish an emergency response team to coordinate communication and response activities during a natural calamity.

Collaboration is another strategy that SMEs can use to survive natural calamities. SMEs can collaborate with other businesses in their locality to share resources and expertise in disaster response and recovery. For instance, SMEs can collaborate to share transportation, storage, and logistics resources during a natural calamity. SMEs can also collaborate with non-profit organizations and government agencies to access resources such as food, water, and shelter for their employees and customers.

Financial resilience is also essential in surviving natural calamities. SMEs should maintain adequate cash reserves to enable them to weather the financial impact of a natural calamity. SMEs can also establish lines of credit or other sources of funding that can be accessed quickly in case of financial need. SMEs should also consider diversifying their revenue streams to reduce their dependence on a single product or service, which can be affected by a natural calamity.

Finally, SMEs should prioritize the safety and well-being of their employees during a natural calamity. SMEs should have evacuation plans and emergency procedures in place to ensure that employees can safely evacuate the premises in case of a natural calamity. SMEs should also train employees how to respond to a natural calamity, including first aid and emergency response procedures.

Conclusively, SMEs can survive natural calamities by being prepared, investing in risk reduction measures, maintaining adequate insurance coverage, establishing reliable communication channels, collaborating with other businesses and stakeholders, maintaining financial resilience, and prioritizing the safety and well-being of their employees. SMEs are critical to the economy, and their survival is essential for the overall economic growth and development of society.

 Compiled by:  David M. Njenga
Vice Chairman