SMEs needs and challenges in a changing disaster context Towards Resilient Business Communities Learning from Small and Medium Enterprises SMEs needs and challenges in a changing disaster context Aslam Perwaiz, Head, Disaster Risk Management Systems & Team Leader, iPrepare Business Facility of ADPC

Towards Resilient Business Community ! ADPC, through its iPrepare Business facility, focuses on to build disaster-resilient businesses in the region, by partnership to strengthen resilience of private sector, particularly the SMEs ; providing technical assistance in strengthening resilience on a demand-driven basis; supporting governments in strengthening the enabling environment that promotes risk sensitive and informed investments by private sector and facilitating knowledge sharing at the regional and national level

Why SME Resilience ? SMEs comprise more than 90% of all private businesses SMEs embedded in a larger socio-ecological system: spatial interconnections and dependencies Climate change is an additional stress to business planning and continuity Impacts on the supply and production chains SMEs face greater short-term losses after natural disaster and more vulnerable than larger businesses Many SME owners’ operate and reside locally : double exposure

Need - Strengthen disaster resilience of the SME sector Information on disaster risk and previous disaster impacts Institutional Arrangement / Individual Arrangement Incentives and Training needs Risk Management and Risk Reduction Analysis Financial Strength to Recovery Business Continuity and Supply Chain Issues

Example - Strengthen disaster resilience of the SME sector Enhancing SME general and disaster risk data DRRM and BCM awareness and training Tailored risk financing solutions SME inclusion in DRR and CCA policy, planning and local institutions Large enterprise role in SME resilience

2. Need – A Roadmap for Disaster Resilience for the SME sector Road Map and Action Plan for SME Disaster Resilience Identified Roadmap Theme   Suggested key actions Relevant actors, stakeholders or policy owners Potential pilot initiatives Time Line Enhancing MSME general and disaster risk data DRRM and BCM awareness and training Tailored Risk Financing for SME/MSME MSME inclusion in DRRM and CCA policy, planning and local institutions What are the identified needs Who needs to be concerned with SME disaster resilience Which policy modalities or actions can best support SMEs to become more disaster- resilient How and where policy initiatives and targeted activities can communicate with and access SMEs

2. Example – Thailand SME Disaster Resilience provide technical assistance on risk assessment, risk reduction and business continuity management to selected SMEs on a demand-driven basis. encourage an enabling environment of disaster risk reduction among private enterprises particularly SMEs. ensure disaster preparedness capacities are built within certain SMEs. form selected SMEs as a role model to encourage other enterprises to have awareness and improvement on disaster resilience.

“Resilient SMEs Champion Program” (Thailand pilot) 08/10/2015 7-month program to provide direct technical support to SMEs in DRR and BCP General profiles of 10 selected SMEs: - Most of selected SMEs were affected by floods. One was affected by drought - Average total loss by disaster event: USD 565,035 - Average period of disruption: 52 Days Number selected SMEs in each industrial sector: - Agriculture: 3 - Auto parts and automobiles: 3 - Hotel and Tourism: 1 - Trading: 2 - Communication services: 1 J.K.C. Bike Industry

How we make a resilient SME ? #1 BCP Framework #2 Risk Assessment & Business Impact Analysis #3 Strategies #4 Exercise (Plan-Do-Check-Act)

3- Need for Tools and Capacities for interconnected and systemic impacts

3- Need for Tools and Capacities for interconnected and systemic impacts