Climate Change and Small Businesses: A Systematic Review of Artificial Intelligence Applications for Climate Change Adaptation, Resilience Building, Risk Prediction, Decision Support, and Sustainable Business Transformation

Abstract

Climate change has emerged as a major global challenge, significantly impacting small-scale businesses and startups, particularly in sectors such as agriculture, manufacturing, energy, and retail. These businesses often lack the financial and infrastructural resilience to cope with climate-induced disruptions, making them highly vulnerable to extreme weather events, fluctuating resource availability, and changing consumer behaviors. However, the integration of Machine Learning (ML) and Deep Learning (DL) algorithms presents new opportunities to mitigate risks and enhance adaptive strategies. This paper provides a comprehensive review of how ML and DL models, including Random Forest, Support Vector Machines (SVM), Artificial Neural Networks (ANNs), Long Short-Term Memory (LSTM), and Convolutional Neural Networks (CNNs), are being used to forecast climate-induced risks, optimize supply chains, reduce operational inefficiencies, and ensure business continuity. Additionally, real-world case studies demonstrate how AI-driven climate adaptation strategies have helped businesses improve decision-making and sustainability.