Disaster as Business Risk in SME: An Exploratory Study


Disaster Risk
Risk Protectino
Disaster Risk Management

How to Cite

Setyawan, A., Isa, M., Wajdi, F., & Syamsudin, S. (2017). Disaster as Business Risk in SME: An Exploratory Study. International Journal of Research in Business and Social Science (2147- 4478), 6(6), 52-63. https://doi.org/10.20525/ijrbs.v6i6.831


The concept of business risk has been extended to several new concepts. Disaster, disease, social unrest and terrorism are emerging as part of business risks. This study aim is to explore classification of disaster risk in micro, small and medium enterprises (MSME). This study explains factors and risk perception of disaster prevention and reduction. The study based on survey, which involved 315 MSMEs, focus group discussion and in-depth interview with several key informants. We use content analysis as a basic tool in the data analysis process, with descriptive statistic to complete information findings in the study. Unit analysis of this study are MSME industries, they are batik and textile, furniture and handy-craft and food industry. The result shows that they are interconnectedness between financial institution, local governance and MSME in the disaster risk management model. Each party has obligations in conducting preparedness of disaster and risk protection procedures for disaster risk management. We also find that there is still very low risk perception among MSME in Surakarta. This could be a potential problem when the disaster risk management should be implemented in MSME business.



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