From Bushfires to Pandemic: South Australia’s Business Resurgence

New research conducted by economics experts at the University of South Australia has shed light on the resilience and recovery of small businesses in two South Australian regions following a major bushfire event and disruptions caused by the COVID-19 pandemic.

The study focused on businesses in Kangaroo Island and Barossa Valley, both of which were heavily impacted by the devastating bushfires of 2019-20 and subsequent COVID-19 outbreak. The bushfire on Kangaroo Island, the largest in the island’s history, scorched 211,000ha of land, while the Barossa Valley faced a lockdown due to a cluster of COVID-19 cases.

Dr. Kathy Rao, who led the study, found that a ‘dynamic capabilities approach’ during a crisis is crucial for long-term recovery in regional areas. This approach involves identifying and evaluating threats, deploying resources in response, and renewing or transforming structures to ensure recovery and survival.

Participants in the study emphasized the importance of financial stability, a strong online presence, and connections with local support structures in navigating through crises. Many businesses in the Barossa Valley had to adapt their business models, alter products and services, and make tough decisions such as laying off staff.

The study also highlighted the lack of mental health support for business owners in regional areas during times of crises. Dr. Rao stressed the need for regional businesses to establish connections with local support structures and consider factors like digital marketing strategies in their crisis recovery planning.

Overall, the findings underscore the importance of understanding the impact of disasters on regional businesses and developing policies to support their resilience and recovery. Regional businesses play a vital role in the socio-economic viability of local communities, and it is essential to ensure they have the capacity to adapt and recover from external shocks and disturbances.