Rising Waters, Sinking Profits: Exploring the Immediate Financial Impact of Flooding on Micro-businesses in the Flood-Prone Areas of Valenzuela City

Abstract

Flooding occurs globally; however, in the Philippines, it remains one of the most recurrent and intermittent natural hazards, primarily driven by heavy rainfall, seasonal monsoons, and typhoons. Recurring floods have become a constant threat to the economic progress, particularly in highly flood-prone localities within the National Capital Region, such as Valenzuela City. This study explores the immediate financial impact of flooding on micro-businesses operating in Valenzuela City, utilizing a concurrent embedded mixed-methods approach. Quantitative data were collected through structured surveys to assess both direct and indirect financial losses, operational disruptions, and changes in revenue and cash flow. Complementarily, qualitative interviews were conducted to deduce in-depth insights into the actual experiences, challenges, and coping strategies employed by micro-business owners. Findings reveal that these enterprises endured severe financial strain due to inventory losses, property damage, increased operational costs, supply chain disruptions, and declining customer retention. Their vulnerability is further exacerbated by a significant gap in post-disaster support—stemming from inadequate funding and limited local government unit (LGU) data, which restricts immediate access to insurance and other recovery mechanisms. Anchored in the Disaster Risk Perception Model and Vulnerability Theory, the research underscores the necessity of addressing the unique adaptive capacities of micro- businesses through evidence-based recovery strategies, including financial assistance, risk management, profit sustainability, and resilience-building measures, to enhance survivability of these businesses and sustain local economic development in flood-prone communities.