Indian Journal of Science and Technology

Abstract

Objective: To study the impact of Kerala floods of 2018 in the Micro, Small, and Medium Business Enterprises of Kerala.

Method/ analysis: The study was conducted with the primary data obtained from the ground response of the entrepreneurs by the method of questionnaire. A comprehensive study was undertaken utilizing the competence of advanced statistical tools and software that provided clear insights on the socio-economic aftermaths of the calamity.

Findings: The customer arrival has declined in the flood affected urban areas while rural localities remained same. Purchasing capacity of customers decelerated in the rural localities whereas in urban localities approximate to normal. The expenditure incurred for the entrepreneurs as the result of the devastation was enormously hiked at the same time the employment generation experienced a significant dip in the sector. The overall function of the sector is slowly approaching the normalcy. The rural localities suffered extremely from the disruption of transportation due to extensive damages on roads and highways whereas urban localities have relieved from the disruption of movement of goods. It was found that insurance coverage has not helped them to recover from the losses incurred due to flood. The enterprises functioning in ecologically sensitive areas were the worst affected by the flood. The distribution of income was found to have significant divergence among the urban and rural localities.

Applications and improvements: Mandating the inclusion of insurance policy reforms with specific consideration for employment generation and enhancement of rural economy is necessary. Strict implementation of environmental norms should be constituted.

Keywords: Micro, Small, and Medium Business Enterprises, Purchasing Capacity, Employability, Movement of Goods, Insurance Fulfilments.