Good Governance and Economic Efficiency: The Flooding Risk and its Economic Impacts on SME in Developing Countries

Abstract: The financial management of a disaster risk creates significant tasks and responsibilities for governments, economic agents, individuals and businesses. Among other disasters, flooding is seen to be a significant risk which has the potential to disrupt SME’s operations because the (SMEs) are the backbone of the developing economies and also developed economies. The main goal of this study is two-fold: First, to provide a general overview of the contributions to the literature on the good governance and economic efficiency with a special focus on the financial adaptive capacity of SME to face a natural disaster, second, to identify the reasons for their weakness on adaptive organizational behaviors. Business continuity process is vital aftermath of a flood event. Affected SME’s experiences are discussed drawing upon interviews conducted in local case studies. Acknowledgment: The author thanks to financial support by Galatasaray University Research Foundation under project grant BAP/ 16.103.001