Navigating Sustainability and Inclusivity: Women-Led Community-Based Businesses in Post-Disaster Recovery

Abstract

Community-based businesses have emerged as a means of addressing socio-economic challenges in the aftermath of disasters. This study investigates the contribution of women-led community-based businesses to recovery and their long-term sustainability. It draws upon case studies in the Tohoku region of Japan and Banda Aceh, Indonesia, areas impacted by major earthquakes and tsunamis over a decade ago. Qualitative data were collected through semi-structured interviews. The findings reveal that the community-based businesses surveyed had evolved from mere “reconstruction goods” by maintaining sustained commitment and developing products. Enhancing organizational credibility through quality improvement efforts was crucial for securing long-term contracts with private companies, a key factor for business continuity. However, prioritizing sustainability often came at the cost of diminished community inclusivity, as differences in skill levels and misaligned values among participants led to departures. This study highlights the challenges in balancing business longevity with maintaining businesses’ role as spaces for social interaction and community rebuilding.

1. Introduction

Disasters cause unequal damage by factors such as demographics, political, economic, and social contexts. In particular, many gender disparities have been reported [1,2]. The 2004 Indonesian Ocean tsunami (IOT) and Hurricane Katrina in 2005 caused significant damage and disparities for women in terms of the psychological and economic impacts [3,4]. Similarly, after the 2011 Great East Japan earthquake and tsunami (GEJE), women were at higher risk of unemployment due to unstable jobs and household responsibilities [5].

Community-based businesses (CBBs) have emerged as a means of addressing socio-economic challenges and reducing inequalities for women in recovery [6]. The uneven impact of disasters, which exacerbates existing gender inequalities, requires fine-tuned interventions that empower women in the recovery process. These businesses, often grassroots projects such as handicrafts and processed food production, provide income-generating opportunities tailored to women’s skills as well as spaces for social interaction and mutual support networks. Following GEJE, while men were able to find emergency work, such as clearing rubble, women were not offered similar opportunities. The UN Commission on the Status of Women and the Japanese Reconstruction Agency [7,8] have emphasized the role of CBBs in community reconstruction and economic sustainability in post-disaster recovery. It is necessary to understand how these activities can contribute to recovery and community rebuilding. It is also critical to identify the challenges that women-led CBBs face in order for them to be efficient and effective.

This study aims to clarify the contribution of women-led CBBs to community recovery and to identify the factors that influence the sustainability of business through a case study analysis of the recovery from GEJE and IOT. CBBs have to strike a complex balance between the promotion of inclusive communities and the achievement of business sustainability. This study provides insights to inform policies and support mechanisms that can strengthen the role of CBBs as catalysts for inclusive and resilient recovery.

2. Recovery Support Provided by CBBs

This section reviews the recent literature related to CBBs. CBBs can bring socioeconomical benefits to communities and support to rehabilitating communities following disasters. There has been little research into the difficulties of the trade-off between community recovery and business continuity, which this study covers.

2.1. Social and Economic Benefits Produced by CBBs

CBBs are expected to have both social and economic benefits. Hosouchi [9] identified a wide range of benefits, including: (i) restoration of humanity through empathy and relationships through community involvement; (ii) resolution of local social problems; (iii) establishment of a new economic base, revitalization of the community, and creation of employment opportunities; and (iv) the preservation and innovation of local culture.

The CBB concept is named in Japan as “community business”. Hosouchi [9] described it as a multifaceted concept that emphasized restoring broken community relationships and solving local problems through sustainable, community-driven economic activities. CBBs can create new job opportunities by using local resources, technology, and labor to revitalize local communities, which contribute to preserving local culture and using culture as innovative solutions. Business aims for the dual missions of social benefit and economic independence, without giving priority to profit maximization. Furthermore, CBBs receive various financial and technical supports from government agencies and outside experts, being different from profit-seeking enterprises [10].

CBBs serve as a platform for problem solving and community integration, developing and maintaining community functions, and building relationships based on mutual aid [9]. The activities can serve as hubs for local people to gather, cooperate, and support each other, thereby strengthening social ties. CBBs promote both individual growth and community development. The collective efforts of individuals can lead to effective problem solving in a community. Kobayashi [10] developed the model of the development of CBBs until securing the sustainability of the business. Participation in these efforts also brings about psychological and economic changes in the individuals who participate [11].

Women-led CBBs can contribute to women’s empowerment. Zimmerman [12] defined psychological empowerment as the ability to increase an individual’s sense of self-efficacy and influence those around them. Small community businesses, and there is no difference between women- and male-owned ones, benefit from formal business networks [13,14].

2.2. CBBs in Post-Disaster Recovery

Business recovery from disaster should be viewed as a process, not a state at any point in time. Various factors at individual, family characteristic, community, and government levels affect this process [15]. In particular, the community plays a crucial role. Business recovery and sustainability are assured when communities foster social capital and resilience [16]. After the Wenchuan earthquake, restored small businesses faced difficulties in sustainability. Huang et al. [17] argued that community participation and long-term recovery efforts were crucial in sustaining the restored businesses.

CBBs can help rebuild and maintain social networks in times of disaster. Morrish and Jones [18] stressed that entrepreneurs could heal customers and the community at large by taking proactive steps and leveraging social and organizational networks. Kuwada et al. [19] analyzed the CBB sector involved in disaster recovery in Iwate Prefecture in the Tohoku region in 2013, two years after the GEJE. They found that the challenges were the lack of external support and the need for self-help efforts, resulting in the loss of continuity, a key element of CBBs. Women-led CBBs are characterized by the production and sale of handicrafts [6,20]. These businesses can be started with minimal capital and utilize skills that many women already possess, such as sewing and knitting. These activities can be divided into two types. The first type focuses on efforts to revive traditional crafts that existed before disaster. The second type is the emergence of new handicrafts after the earthquake, which aims to address the social issue of job creation for women [20]. Also, Yamaguchi [20] proposed the development model of CBBs.

Psychological empowerment through CBBs can improve post-disaster situations in which individuals may face trauma and loss. For example, spending time on handicrafts and sharing their joy with others can help heal grief [21,22]. Such activities are not only economically beneficial but also help ensure their independence and autonomy [9,23].

3. Methodology and Cases

This section explains the methodology and the cases that were analyzed in Miyagi Prefecture, an area affected by the GEJE, and in Banda Aceh, Indonesia, an area affected by the IOT. Models that explain CBB development were used as frameworks for analysis.

3.1. Methodology

Three main issues of CBBs were analyzed, as follows: (i) their emergence and development; (ii) the factors necessary for CBBs to sustain their operations; and (iii) the balance between business continuity and inclusive community rebuilding. Qualitative case analysis and comparative analysis were used to analyze the similarities and differences between the cases. Comprehensive data were collected by balancing the flexibility of a structured questionnaire format with unstructured interviews. Semi-structured interviews were conducted with the leaders and core staff of women’s organizations. Interviews were conducted between March and July 2023, either in Tokyo or face-to-face at their offices in the Tohoku region. In Indonesia, interviews were conducted in Aceh from 18 October to 27 October 2023. After the interviews, additional questions were asked via e-mail or virtual meetings. Each session lasted approximately 1–2 h, with guided topics rather than set questions. Interviews covered business development trends, organizational structure, activities, financial and technical support received, resource management, business networks, etc. In addition, activity reports, annual reports, and related documents were examined to collect quantitative data to corroborate the findings of the interviews.

3.2. Model

The Kobayashi model and Yamaguchi model were used for analysis of the emergence and development of CBBs [10,20]. These models explain the stage-wised development processes of CBBs.

The Kobayashi model was derived from empirical analysis in wineries and is valid in the agricultural processing sector. The model provides a comprehensive framework for understanding the development of CBBs. The model identifies the following four stages until full sustainability of business activities is achieved (Figure 1):

(1)

At the ‘individual level’, local problems are identified, and spontaneous actions are taken.

(2)

At the ‘social level’, organizations are formed through the sharing of local problems.

(3)

At the ‘economic level’, goods and services begin to be provided on a non-profit basis by mobilizing resources, such as human resources, materials, and funds.

(4)

At the ‘socio-economic integration level’, once products receive positive feedbacks and reputation, activities can be sustained by the acquisition of more resources.

The Yamaguchi model identifies three stages of CBB development for handicraft production in disaster-affected areas (Figure 2). CBB products start as ‘goods produced in the disaster area’, evolve into ‘souvenirs from disaster areas’, and then into ‘universal goods’ for ‘general daily necessities’. Initially, more emphasis is placed on the fact that the products were produced in disaster areas, and as they became souvenirs, the characteristics of the disaster gradually diminish, and eventually the business continues as they are sold as general daily necessities. It was found that external factors such as resources, ideas, and funds as well as local labor played an important role in the production of handmade products in affected areas [20]. The model focuses on the products and does not take into account the transformation of objectives and operational structures.

3.3. Cases in Tohoku and Aceh

Four cases of women-led CBBs were selected in Tohoku, Japan, and two cases were selected in Banda Aceh, Indonesia (

Table 1. CBB of case study.

Organization	A	B	C	D	E	F
Activity Duration	2011~2019.9	2012.4~as of date	2011.9~2023.3	2014.1~as of date	2016~2019	2016~as of date
Location	Village in Oshika peninsula	Watali town	Minami Sanriku town	Higashi Matsushima city	Village in Banda Aceh	Village in Banda Aceh
Organization structure	General Incorporated association	General Incorporated association	Voluntary Association →Non-profit Organization	General Incorporated association →Sole proprietorship	CoMu Cooperative →Sole proprietorship (usaha kecil)	CoMu Cooperative →Sole proprietorship (usaha kecil)
Main Activities	Manufacture and sales of Original Accessories	Manufacture and sale of remade miscellaneous goods using kimono fabric	Manufacture and sale of original knickknack, sewing contract	Manufacture and sale of original sewing, sewing contract	Manufacture and sale of original sewing	Organic vegetables Managing Waste Collecting Point Manufacture and sale of Waste products
Activity Funds	business income	Subsidy, business income	business income	Subsidy	Subsidy	Business income

). These areas experienced major earthquakes and tsunamis over 10 years ago. All four CBBs in Tohoku produced handicrafts, such as accessories, pouches, sewing, and bags. CBBs, which had activities of relatively long periods, over eight years, were selected from the list of over 100 CBBs in the Tohoku region. Organizations E and F, which were supported by organization C under an assistance program conducted by Higashimatsushima City, were selected. In Aceh, one CBB produced sewing, to which organization C transferred skills, and another produced accessories using recycled materials and organic vegetables.

4. Results

4.1. Emergence

The initiatives of starting businesses varied by activity. According to the Kobayashi model, each CBB started with volunteer activities or community works at the “individual” level and developed to the “social” level. Two founders of organization A and C, who came from outside communities, originally started volunteer projects and developed their activities into businesses. Organization A produced accessories from deer antlers, which are naturally shed in their community once a year. Organization C began repairing donated clothing for use in evacuation shelters and expanded livelihood activities even after moving into temporary shelters. Organizations B and D were created in their communities. The leader of organization B started CBBs to protect and share the life and culture of the women in the community. She learned that there was a custom among the older women in the community to use used kimono scraps to make small bags as an expression of gratitude. She also saw that there was a lot of kimono fabric in a kimono shop that was going to be demolished after the earthquake. She wanted to protect local culture by using the kimono fabrics.

All organizations mobilized the diversity of funding sources. Organizations D, E, and G were launched under support from local governments. Organizations B and D received subsidies from local governments. Organizations A and C primarily relied on donations and revenue generated from product sales.

4.2. Factors Necessary for Sustaining Business

Continuity of business was a challenge. There was initially a high degree of interest in recovery support from individuals and businesses. As time progressed, disaster memories faded, and public interest diminished, leading to a reduction in sales, support, and orders from companies. This subsection examines factors for sustaining business for involving communities.

All the cases proceeded to the next stage of the ‘economic level’ of the Kobayashi model (Figure 3). Also, all cases transcended from ‘reconstruction goods’ to ‘souvenir’ in the Yamaguchi model (Figure 3). They received positive reputations from markets and could continuously develop activities. They were willing to continue their businesses, not merely treating them as temporary initiatives. The transition to the production of souvenirs required a professional commitment from organization members to make it a business, rather than a club-like gathering of casual amateurs. The members had to meet the quality requirements and the production deadline in accordance with the contract.

The transition at the next step from “souvenir” products to “universal” products was a significant challenge. To sustain a business, it is necessary to develop products into “universal” products that can compete in a wider market. Souvenirs from the disaster areas were purchased for a while after the disaster due to people’s interest, but as time passed and the disaster was forgotten, sales declined. While four CBBs could transform their products to “universal” ones, organizations A and E could not develop to the next stage of the “universal” product.

The resources for business of labor, markets, and production bases needed to be developed in long-term (

Table 2. Management resources by organization.

Organization		A	B	C	D	E	F
Capacity
	Staff capacity building	〇	〇	〇	〇	×	〇
	Contracts with private enterprise	×	〇	〇	〇	〇	×
Support from external parties
	Support for product development	〇	〇	〇	〇	〇	〇
	Facilitation of production and sales	〇	〇	〇	〇	〇	〇
Business expansion
	Business network	×	〇	×	〇	△	×
	Recruitment of new personnel	×	×	△	△	△	〇

Note: 〇: “implemented”; △: “tried but failed”; ×: “not implemented”.

). To enhance resources, these organizations made efforts to develop staff capacity, receive support, and expand business opportunities. Each organization looked for opportunities to contracts with private companies with extensive networks that CBBs do not have. Furthermore, it was essential to enhance the credibility of the organization through quality improvement efforts and promotions to gain external reputation.

CBBs conducted various activities in capacity building and marketing to continue or expand their businesses. All, except organization E, implemented staff training, such as regular training workshops, study groups, and proficiency assessments for artisans.

All received support from outside for production development, such as experts, designers, and advisors for design and new products. In addition, all received support for production and sales venues through partnerships with the private sector or government agencies. For example, some organizations could have the chance to sell their products at department stores and trade fairs at large cities.

Organizations B, C, D, and E established contracts with private enterprises for production processes, the creation of promotional novelties, and the development of collaborative merchandise. Organizations B, D, and E looked for new business partnerships and opportunities. Organizations B and D participated in national handicraft competitions, attracted attention, and succeeded in obtaining contracts from companies. Organization E received orders for handicrafts from companies thanks to the promotional activities of a government agency. However, it could not meet the delivery schedule, resulting in lost opportunities for development. Some organizations reduced staff members and could not continue businesses, while most of them faced difficulties in recruiting new staff members. Only organization F succeeded in hiring new full-time staff. Organization C was mainly managed by one person, but he was unable to continue due to personal reasons and had to close the business.

4.3. Balance of Community Rebuilding and Business Sustainability

As ironic as it may seem from the term CBBs, community rebuilding and business continuity could not be easily accomplished simultaneously. This is the stage of the “socio-economic integration level” of the Kobayashi model (Figure 3). Mutual support and fun gathering in a group could create a community. On the other hand, business needs competitiveness of quality and efficiency in a market.

CBBs can foster inclusive communities by encouraging the sense of belonging during the recovery period, even though the increase in income was minimal. Members enjoyed casual tea gatherings for conversation during activities. Within the community, participants found roles and helped each other and shared grief, strengthening connections. Craft activities provided therapeutic benefits with a meditative and relaxing nature to help reduce stress and anxiety. The reasons for dropping out were varied and included personal circumstances such as family responsibilities, relocation, and acquiring new jobs (

Table 3. The reasons for decreasing the participants.

Organization	A	B	C	D	E	F
Ability to Meet Required Skill Levels	×	〇	〇	〇	×	×
Common views on values	×	〇	〇	〇	×	〇

Note: 〇: “achieved”; ×: “not achieved”.

). The lead of organization A could resume pre-disaster work of processing oysters and so the remaining three members terminated the business. In organizations B, C, and D, some participants did not reach the technical skill level required by the organization, which led to their dropping out. In organizations B, C, D, and F, disagreements on values of activities led to dropout and affected the sustainability and cohesiveness of the business. In particular, the staff numbers of organization B decreased from 30 to 5.

In organization F, many people left due to the time gap until cultivation led to income generation and for varying motivations regarding the operation of the waste collecting point. However, as the business became a model project for the village, with a system where operators receive payments from the waste bank based on the quality and quantity of waste separation, there has been an increasing active participation from the local community, including those involved in the Village Garden.

Table 4. Vision of each organization.

Organizations	A	B	C	D	E	F
Business continuity	×	〇	〇	〇	×	〇
Inclusive Community	〇	〇	×	×	〇	×

Note: 〇: “achieved”; ×: “not achieved”. Source: Authors.

shows that sustainability of CBBs depends on their vision. Organizations A and E focused on inclusive community building as the organizations’ vision. The report of organization A states, “The true purpose of this venture is not to maximize profit, but to maximize the smiles of the creators”. In the interview, the representative Mr. G mentioned that, despite the strengths and weaknesses of each worker, workers taught each other and cherished their activities. He also said that decisions about the business’s direction were made based on people, not profits.

As an exceptional case, organization B could achieve both by separating the organization for business and community. The general incorporated association continued to provide community interaction spaces, and a new corporation was established with two staff members for business purposes. Ms. H, the representative, noted, “Some people come to us with the attitude that it is normal to miss deadlines. It is impossible to continue doing business with people who have no sense of responsibility to complete the work entrusted to them.” This reflects a divergence in priorities among the organization’s members. For some, the pleasure derived from collaborative efforts resembled more of a club activity than a formal business venture.

5. Discussion

5.1. Business Continuity

The findings of this study highlight that a clear business vision and strategic resource management are essential for CBBs to continue their operations beyond the initial post-disaster phase. As public interest and support diminished over time, CBBs faced a decline in sales, grants, and contracts. Without a strong commitment to long-term operations, the CBBs struggled to survive after the initial goodwill subsided.

Strengthening business networks and seeking technical and financial support were critical as well. Successful CBBs, such as organizations B and D, actively cultivated the resources essential to their market competitiveness. They upgraded the skills of their employees through training and spared no effort in recruiting new talent to meet market demands. In addition, building a strong business network proved critical to winning new contracts, leveraging technical expertise, and identifying new business opportunities. An entrepreneurial spirit for continuous product development, quality improvement, and strategic partnerships with the private sector were critical in the transition from a niche “disaster souvenir” product to a universal, marketable product. Organizations that could not improve their capacities suspended their businesses.

5.2. Navigating the Inclusion-Sustainability Paradox

As recent studies have confirmed, CBBs in Japan and Indonesia contributed to producing job opportunities for women and rehabilitating communities. However, this study found that achieving both inclusion and sustainability is a challenge.

This study highlights the tensions CBBs face in balancing inclusive community rebuilding with operational sustainability. Consistent with the previous research [22], CBBs initially promoted shared emotional healing and social bonding among disaster-affected women by creating and enjoying handicrafts. Income from sales initially contributed directly to participants’ income and satisfaction. However, as the business continued and revenues declined, wages decreased, leading to dissatisfaction and decreased motivation among some participants. As activities shifted to ongoing, for-profit business operations, the role of community rebuilding diminished. Prioritizing sustainability requires compromises in community inclusion, as misaligned values and skill gaps among participants lead to disengagement. This study shows that an excessive focus on either community inclusion or business continuity can undermine the other.

Supporting women’s recovery after a disaster is an ongoing process. Moving to a non-business model, such as grant-funded activities, will allow CBB to continue to provide opportunities for social participation even when business operations are disrupted. More than 10 years after the disaster, “mental recovery” efforts are still underway.

These findings suggest that CBBs should make a clear distinction between community rebuilding and business sustainability as their primary goals, rather than pursuing two conflicting goals. If the goal is community rebuilding, then activities should be accessible and enjoyable to all without putting pressure on income. If the goal is business sustainability, striving for product quality, timely delivery, and marketing is important for market viability, even if participation is limited. As with organization B, setting up different organizations for two purposes could resolve this issue. Assistance agencies should also understand this difficulty and clearly set the goal of either one.

5.3. Limitations of This Study and Future Studies

This study covers CBBs that could continue their activities over 8 years but cannot cover CBBs that suspended their activities with shorter periods. As the public interest faded out, CBBs could not receive support. Understanding issues of this critical period could be useful to further understand the continuity of CBBs.

This study covers Japan and Indonesia. Other countries have different cultural backgrounds from the two countries in gender issues. Comparing cultural factors with other countries could be also need to be studied.

Future research should explore CBBs with different operational focuses, such as processed foods or tourism, as the requirements for community rebuilding vary. This study was unable to quantitatively demonstrate the contribution of CBBs to women’s employment creation, income enhancement, and psychological care. Future research should periodically survey businesses after the disaster to better quantify their contributions.

6. Conclusions

This study analyzed the multiple roles and impacts of women-led CBBs in post-disaster contexts. CBBs can rebuild communities by providing a forum for social interaction and gradual, holistic healing for disaster-affected women. They also aim to increase income for women disadvantaged by disasters. By examining cases from the 2011 Great East Japan earthquake and tsunami in Tohoku, Japan and the 2004 Indian Ocean tsunami in Banda Aceh, Indonesia, this study examined how these grassroot initiatives contributed to community development while meeting the challenges of long-term business sustainability.

Some CBBs went beyond producing “recovery products” to developing generic products that were widely accepted by the market, leading to sustainable economic activities. As time passed after the disasters, public interest waned, and support decreased. Through business networking, CBBs were able to gain access to new markets as well as support for staff capacity building and product development. Creating product credibility through quality improvement activities was crucial in securing contracts with private sector partners. However, prioritizing sustainability often resulted in a less inclusive community, with members leaving over time due to differences in skill levels, motivation, and values among members.

Disaster recovery organizations and assistance agencies should understand the benefits and challenges of women’s CBBs identified in this study. These organizations need to promote CBBs by clearly distinguishing between community recovery and business sustainability as their primary goals, instead of pursuing two contradictory goals.