Federal Reserve Bank of Dallas – Small Business Focus Groups

Challenge

Since 1980, Texas has suffered more billion-dollar natural disasters than any other state in the nation. Many quantitative analyses estimate the state’s overall economic loss due to natural disasters. Weather-related damage to homes, roads, buildings, and infrastructure clearly exact both a financial and personal toll on individuals, neighborhoods, businesses, and communities. Less understood, however, is the risk management mindset of business owners regarding natural disasters, especially small business owners.

Response

In May 2024, the Federal Reserve Bank of Dallas (Dallas Fed), with support from the Dallas Foundation, BeforeDuringAfter coalition, and Texas Mutual, engaged TIP Strategies to organize and facilitate focus group sessions with Texas small businesses and the organizations that serve them. The purpose of the study was to understand how small businesses perceive natural disaster risk, where business owners go to find information, and what the capacity is for organizations to support small businesses with natural disaster planning. The project launched with a roundtable discussion with local, regional, and state economic development organizations. These stakeholders provided insight into the major challenges that small businesses face related to natural disasters and promising success stories from communities who have experienced these events. Following the session, TIP worked with roundtable participants to conduct outreach to small businesses in their respective communities. Based on these local introductions, TIP facilitated a series of small business focus groups throughout September 2024. Three sessions concentrated on specific types of natural disasters common in the state; two sessions solicited input about natural disaster risk broadly. Findings will inform the preparation of future Dallas Fed small business research.