Research pick: SMEs can’t afford to chill in the face of heatwaves - "Analysing the determinants of heatwave risk for small and medium enterprises: a case study"

As the world attempts to cope with the increasing frequency of intense heatwaves, soaring temperatures, wildfires, and extreme weather events that affect lives and livelihoods, communities and businesses have to adapt to cope with the undeniable. One area of concern is the vulnerability of small and medium enterprises (SMEs) to these extremes. Now, research in the International Journal of Global Warming, has focused on a particularly vulnerable region in the developing world, Visakhapatnam, India, in order to identify what measures are crucial to the necessary adaptation.

The team, Hrishikesh Mahadev Rayadurgam and Prakash Rao of the Symbiosis Institute of International Business at Symbiosis International (Deemed to be University) in Hinjewadi, Pune, India, have used statistical modelling to delve into the factors contributing to the susceptibility of SMEs to problems arising from extreme heatwaves. The team’s findings offer new insights, highlighting the factors that affect risk to SMEs and suggesting ways to mitigate the problems such companies face.

Three main factors directly affect risk to SMEs: physical infrastructure, employees, and hazard likelihood and perception. Obviously, damage to buildings and infrastructure is perhaps the most significant contributor to heatwave vulnerability in terms of the business. But, in human and social terms, the risk to employee health and wellbeing is critical especially as heatwaves become more frequent and more extreme.

The research focuses on hard (physical) and soft (non-physical) measures that ought to be taken in order to protect the business and its employees. Guidelines are offered on how to improve climate resilience. These same guidelines while aimed at the focus of the present study, Visakhapatnam, go beyond this region as they will be just as applicable and as replicable in other regions and countries.

Moving forward, the study calls for more in-depth analyses of SMEs and their specific adaptation measures to refine our understanding of heatwave risk. By acknowledging and addressing vulnerabilities, businesses can help protect themselves but also contribute to sustainable development and climate action goals.

The ongoing heatwave crises in many parts of the world underscores the urgency of such research and its implications. The need to equip SMEs with the knowledge and tools to adapt to climate challenges has never been more important. Policymakers and businesses will have to work together to help with this adaptation.

Rayadurgam, H.M. and Rao, P. (2023) ‘Analysing the determinants of heatwave risk for small and medium enterprises: a case study’, Int. J. Global Warming, Vol. 30, No. 4, pp. 430–450.