Hurricane Helene Survey: Operational & Financial Impacts

Introduction 

On September 27, 2024, Hurricane Helene struck Western North Carolina (WNC), causing extensive flooding, mudslides, and downed trees in the area. Roads, homes, power lines, and water treatment facilities were damaged significantly and flooding destroyed large sections of Asheville, Chimney Rock, Lake Lure, Marshall, and Morganton. Thousands of small businesses experienced significant physical damage, were without utilities for extended periods of time, and were unable to serve customers. 

Image of WWBC client Smoky Mountain Cremations & Funeral Services following Hurricane Helene

In November and December, CSBDF’s research team conducted a survey of entrepreneurs that have received services from the organization’s Asheville-based Western Women’s Business Center (WWBC). Over the next several weeks, we will publish a series of posts regarding the impacts of Hurricane Helene on WWBC clients’ business operations and finances, physical infrastructure and efforts to secure disaster relief, and families and communities.  

Despite the tremendous efforts of WNC entrepreneurs to rebuild their businesses and their communities, and the timely interventions made by the WWBC and its partners through the Western North Carolina Small Business Initiative grant program, additional grant funding is needed to ensure that businesses in the region continue to survive, recover, and thrive. 

Hurricane Helene Survey Post 1: Operational & Financial Impacts 

Businesses surveyed by CSBDF vary significantly in terms of the counties in which they are located. While almost 2/3 of businesses that participated in the survey are in Buncombe County, businesses in 14 other counties also participated. 

Figure 1. Survey Participants by County 

Participating businesses belong to a wide range of industries. 30% of firms operate within the Service sector and more than 15% belong to both the Health & Wellness and Retail industries. 10% of businesses provide Food, Beverage & Hospitality services.  

Because many firms in these industries rely on in-person customers – in particular, the thousands of tourists that descend upon Western North Carolina during the fall “leaf peeping season” - they were significantly affected by the dramatic decrease in patronage following the hurricane.  

Figure 2. Survey Participants by Industry 

Small businesses vary widely in size, from owner-operated solopreneurships to firms employing hundreds of employees. Accordingly, the annual revenue of businesses that participated in the survey runs the gamut. While over 10% of businesses are start-ups with no revenue in the previous year, almost two-thirds brought in an annual revenue of less than $100,000, and nearly one-quarter earned revenue between $100,000 and $500,000. Five participants reported that their firms generated more than $1 million. 

Eva Rodriguez-Cué, owner of Haywood Famous coffee shop in Asheville | Photo by ©RED ANGLE PHOTOGRAPHY

Figure 3. Survey Participants Annual Revenue (Pre-Helene) 

Most survey participants either kept their businesses open or reopened their businesses swiftly following Hurricane Helene. At the time of the survey, almost three-quarters of firms were operating. Of the businesses that closed, nearly half planned to reopen.  

However, most participants also experienced significant negative impacts resulting from the storm. More than three-quarters of businesses closed temporarily, 60% saw their in-person customer base decline, and 30% lost online customers and struggled to access needed equipment and supplies.  

As a result, in the weeks and months following Hurricane Helene, one-quarter of businesses in the study experienced a moderate decrease in revenue and over half reported a significant drop in revenue. While some firms were unable to retain their employees following the storm, others managed to do so. A minority of businesses further prioritized their employees’ wellbeing, paying their wages despite substantial declines in revenue and buying necessities (for example, generators) to help their employees’ families weather the storm’s aftermath. 

Figure 4. Survey Participants Post-Helene Revenue Change 

While more than 80% of participants experienced a decrease in revenue following Helene, almost 60% projected that their revenues would increase moderately or significantly over the following year. In contrast, only one-third expected that their revenue would decrease over that period.  

Figure 5. Next Year Revenue Projection 

Although the businesses that participated in the survey vary by location, industry, and revenue, several common themes emerge from the results. Most firms closed following the hurricane and experienced immediate declines in their customer base, access to supplies, and earnings. Many were unable to retain some or all of their employees.  

However, when they completed the survey, almost three-quarters of firms were operating and most businesses that closed temporarily planned to reopen. In addition, a majority expected that their revenue would grow in the following year. This optimistic outlook may be indicative of participants’ confidence in themselves as entrepreneurs, the solidarity and resilience of their communities, and the organizations that support them in the WNC entrepreneurial ecosystem.  

The next post in this series will focus on Helene’s impact on the physical infrastructure of participants' businesses and their efforts to secure disaster relief. Questions about the survey? Email CSBDF Director of Economic Development Policy Adam Safer at asafer@carolinasmallbusiness.org.