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Analysis Of Resource Ownership Of Small Medium Industry And Their Effect On Natural Disaster Preparedness In The Beach Area.

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International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue II, February 2022 | ISSN 2454–6186

Analysis Of Resource Ownership Of Small Medium Industry And Their Effect On Natural Disaster Preparedness In The Beach Area.

Mohamad Adfar
Student of Doctoral Program in Economics Tadulako University-Palu

IJRISS Call for paper

 

ABSTRACT
Palu Bay is one of the bays in a seismically active area in Indonesia which is traversed by the Palu-Koro fault segment. In the aftermath of a major natural disaster in the Region on September 28, 2018 Palu City, Donggala Regency and Sigi Regency were areas that were most affected by this disaster, so it was necessary to identify the level of community preparedness, especially for SMEs in dealing with natural disasters in the future and how the impact of resource ownership will be that they have whether the resource significantly affects SMEs preparedness to face natural disasters. This research was conducted three years after the natural disaster in the Palu Bay Area. The assessment was carried out through a questionnaire involving 260 SMIs that were chosen randomly and from the four variables of SMEs resources studied, that the resources that had an effect on disaster preparedness were the capital variable, which was 0.07, the entrepreneurial variable was 0.35, the labor variable was -0.03, and the Information Technology variable is not significant. While the level of preparedness of SMEs in dealing with natural disasters in the future, 17.31% of respondents are stated to be “not ready”, 60.90% “somewhat ready” and 23.8% “ready” while none of the respondents were “very prepared”. This lack of readiness of SMEs clearly requires the attention of all stakeholders in fostering the resilience of SMEs.

Keywords: SMEs, Disaster, Economics, Industry

INTRODUCTION

An earthquake event occurred in Palu on 28 September 2018 and was followed by a series of tsunami waves that destroyed the Palu Bay Area, that the 7.5 Mw Palu Earthquake occurred at sunset on 28 September 2018 at 18 :02:44 local time (10:02:44 UTC), with the epicenter located at 0.18° South Latitude and 119.85° East Longitude, ~80 km north of Palu City in Central Sulawesi, Indonesia (Han et al., 2021; Zhao, 2021). While the aftershocks (28 September to 22 November 2018) were mostly located southeast of the mainshock thus showing a northwest-southeast trend with a total length of about 200 km and consistent with the nodal plane dipping to the east of the gCMT solution.

Several studies have discussed the cessation of post-disaster business activities and the factors that led to the cessation of business are also not well understood so that in order to rebuild the economy after a natural disaster it is necessary to identify the level of preparedness of MSMEs or SMES in dealing with natural disasters and how the impact of the existence of natural resources is needed. What resources do they have whether these resources affect MSMEs or SMEs in preparing themselves for natural disasters (Badoc-Gonzales et al., 2021; Hossain et al., 2022).

There are several studies that have been conducted previously that identify preparedness in dealing with disasters. This disaster research refers to events that have the potential to cause harm to individuals, organizations, communities, or the environment (Hasan et al., 2021; Shah et al., 2019). When natural disasters such as hurricanes and tornadoes occur, of course, the survival of the organization will be threatened , organizations cannot control the physical characteristics of natural disasters such as intensity and frequency, but organizations can minimize the potential impact of disasters by adopting hazard adjustments (J.M., 1996).