Ventures in Rebuilding: The Role of Entrepreneurship in the Post-Disaster Context
Local Knowledge, No. 1, Summer 2008
10 Pages Posted: 7 Sep 2008
Date Written: July 2008
Disasters radically change people's lives and an area's economic environment. Some people lose their sources of income while simultaneously facing huge expenditures to make their homes habitable again. Others lose parts of their customer bases as people decide to leave the disaster-stricken area. In such situations, policy makers must decide which policies are most likely to help people rebuild their lives and the area's infrastructure and economy. The best option for policy makers is to unleash the forces of entrepreneurship. Because entrepreneurs have better incentives than government officials do to identify problems and provide solutions, the more chaotic a society is, the more it needs entrepreneurs to put it back on track. While post-disaster communities present institutional and policy challenges, the ingenuity of entrepreneurs can make a significant difference in whether a disaster-stricken area rebounds or stagnates.
Keywords: Entrepreneurship, Institutions, Post-Disaster
JEL Classification: M13
Suggested Citation: Suggested Citation