8 in 10 American Small Businesses Not Prepared for Disaster

Yet, 71% say that small business is the key to economic recovery after a major disaster such as Hurricane Katrina

BUFFALO GROVE, IL (November 2, 2005) – In the wake of Hurricanes Katrina, Rita, and, most recently, Wilma, 79% of American small businesses say they do not have a disaster recovery plan in place, according to a new study from the International Profit Associates Small Business Research Board (IPA SBRB).

Study participants also believe small business is the key to economic recovery after a major disaster such as Hurricane Katrina and Hurricane Rita. More than seven in ten (71%) said that small business is the key to economic recovery. Only 6% said small business is not the key to economic recovery and 23% were uncertain.

"With small business making up the overwhelming majority of business in the United States, the nation looks to small business to lead economic revival after disasters. Clearly there are opportunities for entrepreneurs and small businesses especially in light of our findings that more than three-quarters of small business is unprepared for a disaster, an unbelievably alarming statistic," said Gregg Steinberg, President of International Profit Associates, the largest privately-held provider of management consulting and professional services to small and medium-size businesses in North America.

"However, no one is immune from being impacted by a natural disaster or other emergencies, such as a fire. Every small business should have a recovery plan in place that maps the process of getting back to business as quickly and efficiently as possible after a disaster."