FEMA disaster assistance and the mitigation of small business failure after Hurricane Katrina: A correlation study

The correlation research study investigated the relationship between FEMA disaster assistance and economic loss, absence of customers, and destruction of tangible property on tourist-related small businesses in Orleans Parish, in the aftermath of Hurricane Katrina. The businesses investigated were jewelry stores, antique shops, art galleries, souvenir stores, and custom frame shops that suffered extended economic depression after Hurricane Katrina. Of the 132 subjects surveyed, the results were only 39 subjects received FEMA disaster assistance. The remaining subjects survived without FEMA disaster assistance a mitigation factor. The test used to determine the relationship of the variables was Pearson's correlation statistical test (r). Hypothesis 1 was to determine the relationship of FEMA disaster assistance to economic loss. The result for profit level was below a significant level r(37) = .173, p = .292. The result for cash flow was at a significant level r(37) = .429, p = .006. The result for percentage of profit gain or loss was at a significant level r(37) = .480, p = .002. The indication was FEMA disaster assistance mitigated the impact of cash flow and percentage of profit gain, but did not for profit level. Hypothesis 2 was to determine the relationship of FEMA disaster assistance to absence of customers. The result for foot traffic was at a significant level r(37) = .525, p = .001. The result for customers visiting the business was at a significant level r(37) = .533, p = .000. The result for percentage of retained customers was below a significant level r(37) = 0.303, p = 0.061. The indication was FEMA disaster assistance mitigated the impact of foot traffic and customers visiting the business, but did not for percentage of retained customers. Hypothesis 3 was to determine the relationship of FEMA disaster assistance to destruction of tangible property. The result for level of destruction was at a v significant level r(37) = .439, p = .005. The result for loss of property was at a significant level r(37) = .456, p = .004. The result for percentage of business destroyed was at a significant level r(37) = -.423, p = .007. The indication was FEMA disaster assistance mitigated the impact of level of destruction, loss of property, and percentage of business destroyed. Based on the research, the conclusion of the research study was FEMA disaster assistance was a significant factor in mitigating economic loss, absence of customers, and destruction of tangible property after Hurricane Katrina for the 39 subjects who received FEMA disaster assistance and is not a significant factor for the remaining 93 subjects surveyed.;Keywords. FEMA, disaster assistance, small business survival, natural disaster...