Disasters and economic resilience: the income effects of the Cyclone Oswald 2013 on small business owners

Small businesses are regarded as the backbone of Australia’s economy, forming up to 98% of Australian businesses and employing around 44% of Australia’s private sector workforce. Beyond employment, small businesses are integral to the social fabric of their communities, supporting local initiatives and providing important physical places for community members to socialise and engage with each other. Despite their economic importance, little empirical research has been done to understand the impact of natural disasters on small businesses, and the efficacy of government assistance programs in promoting their recovery.

To that end, the Disasters and Economic Resilience: The income effects of Cyclone Oswald 2013 on Small Business Owners – a case study on the Burnett River Catchment Area report explores the impact of ex-Tropical Cyclone Oswald 2013 on the incomes of small business owners residing in the four Burnett River Catchment local government areas (LGAs). The research findings illustrate the difficulty in fully mitigating economic losses in regional communities in Australia, particularly where economic activity is concentrated in - and centred around - disaster sensitive industries like agriculture or tourism. For the Wide Bay-Burnett region, these difficulties will only be exacerbated by the projected population growth and climate change, which is expected to increase extreme weather events and the risk of further inundations in communities like Bundaberg.