08/05/2025

Climate Disasters Pose Long-term Threats to Small Businesses

Small businesses are more vulnerable to climate shocks than larger businesses

The United States is home to millions of small businesses that form the backbone of countless communities. Even during the best of times, keeping shops solvent can be a struggle, but when climate-driven disasters strike, the impact on mom-and-pops can be particularly devastating — and prolonged.

"The news coverage has definitely focused on the physical destruction," said Kyle McCurry, the director of public relations for Explore Asheville, an organization that promotes the North Carolina city, which Hurricane Helene pummeled with torrential rain and flooding last fall. "But sometimes what's less visible is the economic impact on small businesses in our community over time."

Whether it's hurricanes, wildfires, heat waves or ice storms, small businesses are more vulnerable to climate shocks than larger businesses, said Shehryar Nabi, a senior research associate at the Aspen Institute Financial Security Program. He co-wrote a recent report outlining the hurdles small businesses face from severe weather. They can be hobbled by a range of challenges, from limited preparation resources to a lack of post-disaster financing.

Please select this link to read the complete article from Grist.