Every year, approximately 110,000 nonresidential fires occur, impacting a wide variety of businesses such as offices, retail stores, schools, manufacturing facilities, hospitals, and hotels. These fires result in over $3 billion in damages annually, a staggering figure that underscores the importance of preparing for these unexpected events. Despite their frequency and impact, building fires are often overlooked in disaster planning.
Protecting small businesses from fires is a shared responsibility. It requires awareness, planning, and collaboration.
An Increasing Threat and Economic Impact
From 2014 to 2023, the United States experienced a 19% increase in nonresidential building fires. This upward trend highlights the growing risk and the urgent need for businesses to take proactive measures. From offices to hospitals, the potential for widespread damage is immense, affecting not just individual businesses but the economy at large.
Small businesses, which employ nearly half of America's private sector workforce and make up 99.9% of all U.S. businesses, are particularly vulnerable. A 2024 poll revealed that 27% of small businesses are one disaster away from closing their doors permanently. Ensuring their resilience is crucial not only for the businesses themselves but for the stability of our economy.
The Role of Preparedness
Despite the risks, recent surveys show a disconnect between perception and reality. While most small businesses believe they are prepared for the next crisis, only 26% actually have a disaster plan in place. This gap in preparedness can have dire consequences, especially when facing unexpected building fires.
The U.S. Chamber of Commerce Foundation is committed to bridging this gap. By harnessing the power of business, we aim to create solutions that benefit communities around the world. We help prepare businesses for the next disaster by providing education, training, and other resources, so they can resume their vital work of serving communities, even in the face of adversity.
For example, our Small Business Readiness for Resiliency (R4R) program offers a preparedness checklist for major natural disasters. Developed in partnership with FedEx with additional support from Allstate, American Express, and Fiserv, R4R incentivizes small businesses to invest in readiness and resilience as essential business practices.
The checklist walks a small business owner through steps to create an emergency action plan that can prepare them for all hazards. Questions include:
- How vulnerable would your business be if a disaster or other emergency were to occur?
- What is your plan to protect the business and its employees and customers before, during, and after an emergency?
- Have you integrated emergency preparedness procedures into your workplace culture (i.e. train employees, practice your emergency plan, etc.)?
A Call to Action
The stakes are high, but the path to resilience is clear. By taking proactive steps to reduce risk, small businesses can safeguard their future and contribute to better economic outcomes for everyone. This is not just a call to action for small business owners but also an opportunity for business leaders to support this effort.
By investing in preparedness, we can ensure that small businesses continue to thrive, supporting the economy and serving communities across the nation.
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