NEW YORK--(BUSINESS WIRE)--A new study released today finds that close to half of the 1,000 small business owners surveyed, are still lacking a storm preparedness plan almost one year after Superstorm Sandy devastated the North East and shut down 45 percent of small businesses there.
According to the study conducted by Merchant Cash and Capital, one of the nation's leading merchant cash advance providers to ailing businesses after extreme weather emergencies, business owners have not learned their lesson.
“We decided to check the pulse of small business as we approach the one year mark to make sure business owners don’t relive the devastation caused by unexpected storms and natural disasters,” said Stephen Sheinbaum.
The study found that:
- 64% of respondents didn’t have a storm preparedness plan in place before Hurricane Sandy, and as a result 43% of respondents incurred damages and were forced to shut down their business temporarily. This caused 46% of respondents to lose revenue. Alarmingly, 46% have still chosen not to prepare for the next extreme weather occurrence.
- 64% of those affected by Hurricane Sandy were caught off guard.
- Only 22% had a storm preparedness plan in place.
- 14% rushed to prepare once they heard of the pending storm.
- 43% of those who suffered damage had to shut down their business – with 44 percent closing for a number of hours – and 45 percent for days.
- 33.7% were outside of harm’s way and 24% prevented damage with a plan.
- 46% lost revenue – with close to 15% reporting the loss as “substantial.”
- Only 11% were saved from revenue loss because they had a plan in place.
- 88% lost power and internet service – with close to 20% with data loss.
- Post Sandy, close to 40% of the businesses surveyed put a new storm preparedness plan in place.
- Another 16% are working on a plan.
- But a whopping 46% have chosen not to prepare for the next extreme weather occurrence.
About Merchant Cash and Capital
Merchant Cash and Capital provides businesses with a unique type of funding that avoids the hassles often associated with traditional lenders. MCC “buys” a small, fixed percentage of future revenues and advances that money up front. Businesses can use the money as they see fit; for inventory, marketing, expansion, renovation or disaster recovery. Merchant Cash and Capital was instrumental in getting hundreds of businesses back on their feet by providing millions of dollars in assistance post Sandy and Hurricane Irene. And for every dollar funded, MCC also helped to raise money for the Red Cross and other disaster relief organizations.
