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Does social capital pay off? The case of small business resilience after Hurricane Katrina
Author(s) -
Torres Ariana P.,
Marshall Maria I.,
Sydnor Sandra
Publication year - 2019
Publication title -
journal of contingencies and crisis management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.007
H-Index - 51
eISSN - 1468-5973
pISSN - 0966-0879
DOI - 10.1111/1468-5973.12248
Subject(s) - social capital , resilience (materials science) , business , asset (computer security) , financial capital , community resilience , hurricane katrina , psychological resilience , natural disaster , capital (architecture) , finance , economic growth , economics , human capital , sociology , psychology , computer security , geography , engineering , social psychology , social science , archaeology , computer science , reliability engineering , thermodynamics , physics , redundancy (engineering) , meteorology
This article uses objective and subjective measures of small business resilience and multiple categories of social capital pay‐offs to answer two main questions. Does social capital pay off after a natural disaster; and if it does, what type of social capital has the greatest impact on small business resilience? The pay‐off from bridging social capital—receiving support from the community—is what drives both objective and subjective resilience post‐Katrina. The results also show linking capital—support from institutions—can improve economic resilience. Our results provide evidence social capital is a key asset for long‐term resilience for small businesses. Business owners with links to the community and institutions—with more social capital—will be better off when facing a natural disaster.