#3476
Small businesses – those with fewer than 20 employees – make up nearly 90% of the companies (that have employees) in the United States.
In 2004 they numbered over 5.2 million firms, which employed nearly 25 million people.
(2004 US Census Data – Click to enlarge)
In addition, there are nearly 22 million non-employer firms (as of 2007) – essentially self-employed individuals.
While many of the larger companies around the country have instituted some sort of pandemic (or at least all-threats disaster) planning, the same cannot be said for many of the smaller firms.
What we don’t is how realistic, or effective these plans may turn out to be. The assumption is, however, that any plan beats no plan at all.
And that is what many small businesses have: No Plan.
While 2/3rds of American workers are employed by these larger (20+ employee) enterprises, most of these bigger firms sub-contract out work to, or purchase materials from, or are otherwise dependant upon smaller firms.
The ability of a Megacorp with 5,000 employees to operate may very well depend upon some small 10-person shop that produces some critical cog, widget, or expertise.
If that 10-person shop isn’t pandemic ready, then neither is the Megacorp.
The problem isn’t just here in the United States, it is global.
The failure of a company to manufacture, or ship a product from China or Malaysia or South Korea could bring a business in London to an abrupt halt. Our global economy means we are all more interconnected . . .and dependent on one another . . . than before ever.
While it is true (at this point in time) that the H1N1 pandemic of 2009 doesn’t look like a repeat of the 1918 killer pandemic – there are grave concerns that heavy absenteeism could seriously interfere with many firm’s ability to function.
In the UK this morning, we get a cautionary story from The Observer, whereby we learn of concerns that this pandemic could paralyze important segments of British society.
Swine flu could bring UK to a halt, Whitehall told
Still from a Department of Health advert advising the public on how to stop the spread of flu virus. Photograph: Department of Health
Vital sections of society could be paralysed if swine flu reaches epidemic proportions as expected, the government has been warned.
A Whitehall meeting of emergency services and business chiefs has been told that more than a third of Britain's businesses have no response plans at all for dealing with the pandemic, while specific fears have been raised about the ability of the country's broadband network and the London Underground to operate effectively.
The development follows news last week that the first British person with no underlying health problems had died of swine flu. The patient, who died on Friday at a hospital in Essex, was the 15th swine flu-related death in the UK. "This death underlines that, although the virus is proving generally mild in most people, it is more severe in some cases," said the government's chief medical officer, Sir Liam Donaldson.
Doctors have also warned that rates of infection are reaching epidemic levels in London and the West Midlands. Several million people could become ill with either seasonal flu or swine flu by the end of the year. Schools would close and transport and other vital services, such as GP surgeries, would be put under severe strain.
Are these concerns overblown for this pandemic? Perhaps.
But no one should be too comforted by the early reports of the mild nature of this pandemic. Viruses mutate, and can do so quite abruptly. The pandemic we may be facing in December may be very different from the one we are seeing today.
Over the past several years we’ve seen several polls that have indicated disturbing gaps in preparedness levels around the world.
Earlier this year, a health care workers poll stated:
Healthcare Workers In Peril:
Preparing To Protect Worker Health And Safety During Pandemic InfluenzaA Union Survey Report
April 16, 2009
More than one third of the respondents believe their workplace is either not ready or only slightly ready to address the health and safety needs necessary to protect healthcare workers during a pandemic.
Given this lack of readiness, 43 percent of respondents believe that most or some of their fellow workers will stay home.
Last summer a poll in Japan stated:
According to the InterRisk Research Institute & Consulting Inc. survey, 52 percent of 448 firms surveyed said they have no plans to work out measures against a possible new influenza pandemic for which people have little immunity.
The point of all of this being that with a pandemic on the immediate horizon, every business needs to be actively preparing for what we may face come this fall and winter.
Right now, H1N1 doesn’t look like the worst-case scenarios we’ve seen discussed over the past few years – but that is no reason to let down our guard.
A something-less-than-worst-case scenario may be even more important to be prepared for – because it is something you can reasonably hope to mitigate.
All businesses, large and small, need to take disaster and continuity planning seriously. If it isn’t a pandemic, it will be an earthquake, or a hurricane, or a flood. But the odds are reasonably good that some crisis will affect your business over the next few years.
NIOSH, a division of the HHS, has a treasure trove of preparedness information for businesses of all sizes. It, along with the workplace planning page at www.flu.gov are good places for any business to start.
It isn’t enough, however, to have a pandemic plan on paper. You have to test, and then modify or adjust your plans. And then you have to test them again. And again.
A plan that doesn’t work, is simply a waste of money.
For those who doubt that a `mild pandemic’ (and the jury is still out on the severity of this one) can cause major disruptions in society and the economy, all one has to do is look at the shutdowns of the Mexican and Argentine economies from this virus.
Proof that It doesn’t take a high fatality-rate pandemic to ruin your entire day.
