Quake firms must see positives: Expert

Photo / Geoff Sloan

Small businesses struggling after the Christchurch earthquake should look for possibilities which wouldn't have existed before the earthquake, an academic says.

John Vargo, of Canterbury University's resilient organisations research programme, said companies needed to "lift their eyes off the ground" and look for the positive. "It's an unprecedented opportunity to take a world class city and make it twice as good."

Vargo will speak at a meeting about the role of SMEs in disaster recovery at Massey University's centre for SME Research in Wellington on Tuesday.

The response of companies to the disaster varied.

"Some have limped out of the disaster and others have dealt with it robustly." Resilience could be enhanced by strong leadership and decision-making processes, he said. "Companies with a hierarchical approach won't be as fast on their feet."

Whether companies bounced back depended on factors such as positive staff relationships and the recovery of key resources.

Those whose offices were in disrepair or who worked near damaged buildings would be most distressed. "The level of disruption is huge. Either it isn't possible to get inside or people think it's closed."

Success stories included a small IT business based in Christchurch's CBD which moved in with its competitor. "It meant a small firm in real trouble was able to reopen its doors as soon as possible because of a good working relationship."

After the September 4 earthquake, Vargo surveyed 870 organisations in the Christchurch and Kaiapoi CBDs.

Forty per cent of the business surveyed reported a decrease in revenue, with a third of those saying their income had dropped by up to 50 per cent.

However, 15 per cent of businesses had seen an increase in revenue.

Vargo carried out another survey after the February 22 quake, the results of which are still being compiled.