Forty percent of small and medium businesses never reopen after a disaster hits, and many that do manage to restart fail within a year, according to the United Nations Office for Disaster Risk Reduction (UNDRR) in a new report on business continuity planning. The numbers show why companies need to rethink how they operate before trouble strikes. Building disaster resilience doesn’t mean changing what a business does—it means changing how it does it.
Most small businesses don’t have written continuity plans, even though disasters are hitting more often and harder than before. Only 20-30% of small and medium enterprises have business continuity plans in place, leaving the majority unprepared when storms, floods, or other disasters hit their communities.
UNDRR is working with local governments and business groups in Barcelona, Bridgetown, and Sendai to help small businesses create and test continuity plans. The project is already showing results. A business continuity plan outlines what companies need to keep operating or restart quickly after a disruption. It serves as a guide for changing operations when needed. Companies with tested plans can absorb shocks better, change how they work, recover faster, and become more resilient than those without plans.
Business continuity plans are cheap compared to the cost of being unprepared. They require low financial investment, especially for small businesses that don’t have resources for bigger disaster preparation efforts. The plans help companies protect their assets and data while keeping customers during tough times.
Companies with continuity plans get a competitive edge during uncertain times. They can minimize downtime and restart operations quickly, which helps them keep market share while competitors struggle to recover.
