Governmental Incentivization for SMEs’ Engagement in Disaster Resilience in Southeast Asia

  • Aleksandrina V. Mavrodieva Graduate School of Media and Governance, Keio University Shonan Fujisawa Campus 5322 Endo, Fujisawa, Kanagawa Prefecture 252-0882, Japan;
  • Dyah S. Budiarti Graduate School of Media and Governance, Keio University Shonan Fujisawa Campus 5322 Endo, Fujisawa, Kanagawa Prefecture 252-0882, Japan;
  • Zhou Yu Graduate School of Media and Governance, Keio University Shonan Fujisawa Campus 5322 Endo, Fujisawa, Kanagawa Prefecture 252-0882, Japan
  • Federico A. Pasha Graduate School of Media and Governance, Keio University Shonan Fujisawa Campus 5322 Endo, Fujisawa, Kanagawa Prefecture 252-0882, Japan;
  • Rajib Shaw Graduate School of Media and Governance, Keio University Shonan Fujisawa Campus 5322 Endo, Fujisawa, Kanagawa Prefecture 252-0882, Japan;
Keywords: Small and Medium Enterprises (SME), Private Business, Disaster Response, Disaster Preparedness and Resilience, Government Incentives, Southeast Asia, Business Continuity

Abstract

The resilience of Small and Medium Enterprises (SMEs) is regarded as a precondition of sustainable development both at the local and the national levels, as they are the providers of the main portion of jobs in the market, contributing an average between 57 to 97% of national employment in the ASEAN countries. At the same time, SMEs are the most vulnerable businesses as a result of financial, technological, and administrative limitations, where the majority of SMEs lack even basic knowledge on disaster preparedness and response techniques. The current study argues that governments have a particularly important role in mobilizing SMEs disaster resilience through developing adequate policies and legislation, and through providing the necessary infrastructure and investment climate for SMEs to thrive, focusing particularly on Indonesia, the Philippines and Thailand. The research tries to present the current level of SME involvement in each of the three countries and to identify relevant gaps and opportunities. This paper does not include an extensive list of recommendations but tries to focus on some of the basic techniques which governments can and should employ in their efforts towards economic and community resilience, arguing that a number of appropriate incentives would be beneficial in engaging SMEs as one of the vital parts of private sector. structured abstracts: 1) Introduction; 2) Methods; 3) Results; 4) Conclusions and implication.

References

Villarroel, M. I., Pyle, J., Ryoko, I., Bhat, M., Fernandez, A., Vatsa, K., Shumba, O., et al. 2013. Small Businesses: Impact of Disasters and Building Resilience. Analysing the Vulnerability of Micro, Small, and Medium Enterprises to Natural Hazards and Their Capacity to Act as Drivers of Community Recovery. UNDP Crisis Prevention and Recovery. Retrieved from: https://www.preventionweb.net/english/hyogo/gar/2013/en/bgdocs/UNDP,%202013.pdf, Accessed: 05.06.2018.

ASEAN, and Secretariat. 2015. ASEAN Strategic Action Plan for SME Development 2016-2025. Jakarta: ASEAN Secretariat. Retrieved from: http://www.smecorp.gov.my/images/pdf/SAP-SMED-Final.pdf. Accessed: 10.06.2018.

Asian Disaster Preparedness Center (ADPC). 2017. Strengthening Disaster and Climate Change Resilience of Small & Medium Enterprises in Asia: Indonesia, Philippines, Thailand, Viet Nam. Regional Synthesis Report, October 2017, Retrieved from: https://goo.gl/KP23Ek, Accessed: 12.06.2018.

Picard, Mary. 2017. Enabling Environment & Opportunities Philippines Strengthening Disaster and Climate Resilience of Small & Medium Enterprises in Asia: Philippines. ADPC, Bangkok, Thailand. Retrieved from: http://www.academia.edu/34920586/ENABLING_ENVIRONMENT_and_OPPORTUNITIES_Philippines_STRENGTHENING_DISASTER_AND_CLIMATE_RESILIENCE_OF_SMALL_and_MEDIUM_ENTERPRISES_IN_ASIA. Accessed: 21.06.2018.

United Nations Office for Disaster Risk Reduction (UNISDR). 2013. Private Sector Strengths Applied: Good Practices in Disaster Risk Reduction from Japan. Retrieved from: https://www.preventionweb.net/files/33594_privatesectorstrengthsapplied2013di.pdf.Accessed: 12.06.2018.

Samantha, Gunathilaka. 2018. The Impact of Natural Disasters on Micro, Small and Medium Enterprises (MSMEs): A Case Study on 2016 Flood Event in Western Sri Lanka. Procedia Engineering 212: 744–51. Elsevier. Retrieved from: https://doi.org/10.1016/j.proeng.2018.01.096. Accessed: 12.06.2018.

Zhang, Y., Lindell, M. K. and Prater, C. S. 2009. Vulnerability of Community Businesses to Environmental Disasters. Disasters 33 (1): 38–57. Retrieved from: https://doi.org/10.1111/j.1467-7717.2008.01061.x.a. Accessed: 12.06.2018.

Ballesteros, Marife M., and Sonny N. Domingo. 2015. Building Philippine SMEs Resilience to Natural Disasters. Discussion Paper Series No. 2015-20 (Revised). Philippine Institute for Development Studies. Retrieved from: https://dirp3.pids.gov.ph/webportal/CDN/PUBLICATIONS/pidsdps1520_rev.pdf. Accessed: 12.06.2018.

Gupta, Sushil. 2010. Synthesis Report of Ten ASEAN Countries Disaster Risks Assessment: ASEAN Disaster Risk Management Initiative. ASEAN. Retrieved from: http://www.unisdr.org/files/18872_asean.pdf. Accessed: 17.06.2018.

Rampangilei, Willem. 2016. ASEAN Vision 2025 on Disaster Management. ASEAN. Retrieved from: http://www.asean.org/storage/2012/05/fa-220416_DM2025_email.pdf. Accessed: 21.06.2018.

Ismail, Nafesa, Kenji Okazaki, Chiho Ochiai, and Glenn Fernandez. 2018. Livelihood Changes in Banda Aceh, Indonesia after the 2004 Indian Ocean Tsunami. International Journal of Disaster Risk Reduction 28 (June): 439–49. Elsevier. Retrieved from: https://doi.org/10.1016/j.ijdrr.2017.09.003. Accessed: 21.06.2018.

Perwaiz, Aslam. 2015. Thailand Floods and Impact on Private Sector. In Disaster Management and Private Sectors, 231–45. Disaster Risk Reduction. Springer, Tokyo. Retrieved from: https://doi.org/10.1007/978-4-431-55414-1_14. Accessed: 22.06.2018.

Auzzir, Zairol, Richard Haigh, and Dilanthi Amaratunga. 2018a. Impacts of Disaster to SMEs in Malaysia. Procedia Engineering 212: 1131–38. Retrieved from: https://doi.org/10.1016/j.proeng.2018.01.146. Accessed: 21.06.2018.

UNISDR. 2015. Disaster Risk Reduction Private Sector Partnership: Post 2015 Framework-Private Sector Blueprint Five Private Sector Visions for a Resilient Future, Retrieved from: https://www.preventionweb.net/files/42926_090315wcdrrpspepublicationfinalonli.pdf. Accessed: 19.06.2018.

Izumi, T. & Shaw, R. 2015. Chapter 1: Overview and Introduction of the Private Sector’s Role in Disaster Management in Izumi, T. & Shaw, R. (eds.) Disaster Management and Private Sectors. Challenges and Potentials. Springer Japan 2015. ISSN 2196-4106. DOI 10.1007/978-4-431-55414-1.

Asian Development Bank (ADB). 2016. Incentives For Reducing Disaster Risk In Urban Areas. Experiences from Da Nang (Viet Nam), Kathmandu Valley (Nepal), and Naga City (Philippines). ADB Philippines. Retrieved from: https://www.adb.org/sites/default/files/publication/185616/disaster-risk-urban.pdf. Accessed: 12.06.2018.

ADPC. 2012. Strengthening Disaster and Climate Resilience of Small & Medium Enterprises in Asia. Thailand. Bangkok, Thailand. Retrieved from: http://www.adpc.net/sme-resilience-asia/download/THA/IP_CR_Thailand.pdf. Accessed: 08.06.2018.

Mardanugraha, E. - ADPC. 2016. Disaster Resilience of Small and Medium Enterprises (SMEs) in Indonesia – Survey Results and Policy Environment. Presentation at Asian Business Forum 2016. Retrieved from: https://www.adpc.net/igo/contents/blogs/ABF2016/download/presentation/Day%201_20%20Apr%202016/02_Thematic%20Discussion/4.%20PPT_EUGENIA-mcp-rev.pdf. Accessed: 08.06.2018.

International Labour Organization (ILO), Bureau for Employers' Activities; Regional Office for Asia and the Pacific; Employers’ Confederation of the Philippines. 2015. Needs Assessment For The Private Sector in The Philippines: Disaster Preparedness, Response And Recovery. Bangkok, Thailand: ILO. Retrieved from: https://www.ilo.org/asia/publications/WCMS_368162/lang--en/index.htm. Accessed: 10.06.2018.

ADPC. 2015. Towards A Resilient Business Community in Thailand. Bangkok, Thailand. Retrieved from: http://www.adpc.net/igo/contents/publications/publications-Details.asp?pid=782#sthash.nt1KncwZ.dpbs. Accessed: 11.06.2018.

Ono, Takahiro. 2014. Area Business Continuity Planning Study by JICA 12. OSMEP. 2015. SMEs in Thailand. Shensu-U Jp. Retrieved from: http://ir.acc.senshu-u.ac.jp/?action=repository_uri&item_id=10333&file_id=15&file_no=1, Accessed: 12.06.2018.

Asia-Pacific Economic Cooperation (APEC). November 2014. How to Promote Business Continuity Planning to Mitigate the Impact of Disasters. A Guide for Government Officials, Emergency Preparedness Working Group. Retrieved from: https://goo.gl/NBMAuQ. Accessed: 04.07.2018.

UNDP, Pacific Risk Resilience Programme (PRRP). August 2017. The Building Blocks for Successful Private Sector Engagement. Retrieved from: https://goo.gl/UanKaS, Accessed: 28.06.2018.

Gall, M, Cutter, S.L., and K Nguyen. 2014. Incentives for Disaster Risk Management. IRDR AIRDR Publication No.2). Beijing: Integrated Research on Disaster Risk. DOI: 10.13140/2.1.3178.8325.

UNESCAP. 2018. Opportunities for Regional Cooperation in Disaster Risk Financing. Retrieved from: https://www.unescap.org/sites/default/files/ESCAP_Opportunities_Regional_Cooperation_DRF_2018.pdf. Accessed: 28.06.2018.

Japhta, Rubin, Prashant Murthy, Yopie Fahmi, Anastassiya Marina, and Aarti Gupta, eds. 2016. UKM Yang Dimiliki Wanita Di Indonesia: Kesempatan Emas Utk Institusi Keuangan Lokal. International Finance Corporation World Bank Group. Retrieved from: http://documents.worldbank.org/curated/en/737221477568795492/UKM-yang-dimiliki-wanita-di-Indonesia-kesempatan-emas-untuk-institusi-keuangan-lokal. Accessed: 26.06.2018.

APEC Small and Medium Enterprise Working Group (SMEWG). November 2014. APEC SME Disaster Resilient Policy Framework. Retrieved from: file:///C:/Users/user/Dropbox/%D0%AF%D0%BF%D0%BE%D0%BD%D0%B8%D1%8F/Keio%20SFC%202018/WGs/WG2/M%20SCE%2002%2011A_APEC%20SME%20Disaster%20Resilience%20Policy%20Framework_final_v2ed%20(1).pdf. Accessed: 05.06.2018.

Employers’ Confederation of the Philippines (ECOP). 2015. Retrieved from: http://ecop.org.ph/. Accessed: 26.06.2018.

Torres, Ted P. 2015. Philippines Lags in SME Lending in ASEAN. Philstar.Com. September 3, 2015. Retrieved from: https://www.philstar.com/business/2015/09/03/1495620/philippines-lags-sme-lending-asean. Accessed: 26.06.2018.

Published
2019-04-06
How to Cite
Mavrodieva, A., Budiarti, D., Yu, Z., Pasha, F., & Shaw, R. (2019). Governmental Incentivization for SMEs’ Engagement in Disaster Resilience in Southeast Asia. International Journal of Disaster Risk Management, 1(1), 32-50. https://doi.org/10.18485/ijdrm.2019.1.1.2
Section
Articles