ENDNOTES1234567South Africa: An Assessment <str<strong>on</strong>g>of</str<strong>on</strong>g> the Investment Climate, World Bank, December 2005http://www1.worldbank.org/rped/documents/ICA008.pdfhttp://www.gt.co.zaNati<strong>on</strong>al Victims <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>Crime</str<strong>on</strong>g> Survey South Africa, 2003Christopher St<strong>on</strong>e (2006) <str<strong>on</strong>g>Crime</str<strong>on</strong>g>, Justice, and Growth in South Africa: Toward aPlausible C<strong>on</strong>tributi<strong>on</strong> from Criminal Justice to Ec<strong>on</strong>omic Growth, CID Working Paperno. 131, Center for Internati<strong>on</strong>al Development, Harvard University, p2.Libor Krkoska and Katrin Robeck, EBRD working paper: The impact <str<strong>on</strong>g>of</str<strong>on</strong>g> crime <strong>on</strong> theenterprise sector: Transiti<strong>on</strong> versus n<strong>on</strong>-transiti<strong>on</strong> countries, July 2006,www.ebrd.org/pubs/ec<strong>on</strong>o/wp0097.pdfBusiness <strong>Report</strong>, 21 March 2007The final sample allowed for five percent white owned businesses. ‘Black-ownedbusinesses’ included businesses operated by coloured people, particularly in Cape Town.8 FinScope <strong>Small</strong> Business Survey <strong>Report</strong>, <strong>Gauteng</strong> 2006, Prepared for FinMark Trust and<strong>Gauteng</strong> Enterprise Propeller, December 2006. The study assessed the degree <str<strong>on</strong>g>of</str<strong>on</strong>g>sophisticati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> small businesses operating in <strong>Gauteng</strong>, ranging from the informal streetvendors to more sophisticated and sustainable businesses. Eighty seven percent <str<strong>on</strong>g>of</str<strong>on</strong>g> smallbusinesses covered by the Finscope study were owned and run by black owners. Themajority <str<strong>on</strong>g>of</str<strong>on</strong>g> black owned businesses were in the informal sector.910111213141516"Enhancing Urban Safety and Security: Global <strong>Report</strong> <strong>on</strong> Human Settlements, UN-HABITAT, 2007Generati<strong>on</strong> Next Survey Results, published in the Sunday Times, 27 May 2007Household and Business Satisfacti<strong>on</strong> Surveys, 2006, study commissi<strong>on</strong>ed by theCorporate Planning Unit, City <str<strong>on</strong>g>of</str<strong>on</strong>g> Johannesburg, compiled by AA Lightelm and DHTustin, Bureau <str<strong>on</strong>g>of</str<strong>on</strong>g> Market Research UNISA, June 2006Sample size 441 - 5 resp<strong>on</strong>dents declined to categorise the area in which they operated.These figures are in line with the findings <str<strong>on</strong>g>of</str<strong>on</strong>g> the 2003 Nati<strong>on</strong>al Victims <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>Crime</str<strong>on</strong>g>Survey, which found that 53% <str<strong>on</strong>g>of</str<strong>on</strong>g> South Africans believed that crime in their area <str<strong>on</strong>g>of</str<strong>on</strong>g>residence had increased in the past three years, 25% believed that crime levels hadstayed the same, and 21% said that crime in their area had decreased(www.iss.co.za/M<strong>on</strong>ographs/No101/Chap4.htm)See Annex 1 for detailed comparative dataThis finding corresp<strong>on</strong>ds with the findings <str<strong>on</strong>g>of</str<strong>on</strong>g> the World Bank Investment Climate study,which found that, after c<strong>on</strong>trolling for size, ownership, and costs and losses associatedwith crime, firms in Cape Town were most likely to suffer losses from crime.Ken Pease, Repeat Victimisati<strong>on</strong>: Taking Stock, <str<strong>on</strong>g>Crime</str<strong>on</strong>g> Detecti<strong>on</strong> and Preventi<strong>on</strong> SeriesPaper 90, UK Home Office, 1998
THE IMPACT OF CRIME ON SMALL BUSINESSES171819202122232425262728293031Police Research Series Paper 95 - Business as Usual: An Evaluati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> the <strong>Small</strong>Business and <str<strong>on</strong>g>Crime</str<strong>on</strong>g> Initiative, Nick Tilley, Matt Hopkins, Editor: Barry Webb, HomeOffice Policing and Reducing <str<strong>on</strong>g>Crime</str<strong>on</strong>g> Unit, Research, Development and StatisticsDirectorate, United Kingdom, 1998 – reporting <strong>on</strong> a study <str<strong>on</strong>g>of</str<strong>on</strong>g> small businesses inLeicesterPercepti<strong>on</strong>s are presented as the percentage <str<strong>on</strong>g>of</str<strong>on</strong>g> businesses reporting that a particularcrime is prevalent in an area. Actual experience is presented as the number <str<strong>on</strong>g>of</str<strong>on</strong>g> times aparticular type <str<strong>on</strong>g>of</str<strong>on</strong>g> crime was experienced divided by the number <str<strong>on</strong>g>of</str<strong>on</strong>g> businesses in thesample.Business Envir<strong>on</strong>ment and Enterprise Performance Survey (BEEPS), cited by Krkoskaand Robeck, 2003; Jamaica: The Road to Sustained Growth, Country Ec<strong>on</strong>omicMemorandum, <strong>Report</strong> no. 26088-JM, World Bank, December 2003Turnover is assumed to be the mid point <str<strong>on</strong>g>of</str<strong>on</strong>g> the turnover band in column 1The mean cost <str<strong>on</strong>g>of</str<strong>on</strong>g> crime for firms across the sample is very similar to that found by theAIC in the 1999 study <str<strong>on</strong>g>of</str<strong>on</strong>g> small retailers in Australia – see Appendix 2 for details.Jamaica: The Road to Sustained Growth, Country Ec<strong>on</strong>omic Memorandum, <strong>Report</strong> no.26088-JM, World Bank, December 2003Gaviria, A., 2002, “Assessing the Effects <str<strong>on</strong>g>of</str<strong>on</strong>g> Corrupti<strong>on</strong> and <str<strong>on</strong>g>Crime</str<strong>on</strong>g> <strong>on</strong> Firm Performance:Evidence from Latin America”, Emerging Markets Review, Vol. 3(3), pp245-268Transiti<strong>on</strong>al ec<strong>on</strong>omies: Libor Krkoska and Katrin Robeck, EBRD working paper, July2006John Sloan and Madhava Bodapati, UAB criminologists: <str<strong>on</strong>g>Impact</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> crime <strong>on</strong> smallbusinesses in downtown Birmingham and Southside, UAB Magazine, Spring 1998, Vol.18, Number 2Jamaica: The Road to Sustained Growth, Country Ec<strong>on</strong>omic Memorandum, <strong>Report</strong> no.26088-JM, World Bank, December 2003John Sloan and Madhava Bodapati, UAB criminologists: <str<strong>on</strong>g>Impact</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> crime <strong>on</strong> smallbusinesses in downtown Birmingham and Southside, UAB Magazine, Spring 1998, Vol.18, Number 2; Transiti<strong>on</strong>al ec<strong>on</strong>omies: Libor Krkoska and Katrin Robeck, EBRDworking paper, July 2006The impact <str<strong>on</strong>g>of</str<strong>on</strong>g> crime in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> loss <str<strong>on</strong>g>of</str<strong>on</strong>g> customers appears to c<strong>on</strong>siderably higher forsmall businesses compared to medium and large firms. The 2007 Grant Thornt<strong>on</strong> surveyfound that 18% <str<strong>on</strong>g>of</str<strong>on</strong>g> medium to large businesses reported loss <str<strong>on</strong>g>of</str<strong>on</strong>g> customers as a result <str<strong>on</strong>g>of</str<strong>on</strong>g>crime – compared to almost half <str<strong>on</strong>g>of</str<strong>on</strong>g> our small business sample.Jamaica: The Road to Sustained Growth, Country Ec<strong>on</strong>omic Memorandum, <strong>Report</strong> no.26088-JM, World Bank, December 2003Taylor, N. & Mayhew, P. 2002: Financial and Psychological Costs <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>Crime</str<strong>on</strong>g> for <strong>Small</strong>Retail <strong>Businesses</strong>, Trends and Issues in <str<strong>on</strong>g>Crime</str<strong>on</strong>g> and Criminal Justice, no. 229, AustralianInstitute <str<strong>on</strong>g>of</str<strong>on</strong>g> Criminology, CanberraChristopher St<strong>on</strong>e, <str<strong>on</strong>g>Crime</str<strong>on</strong>g>, Justice, and Growth in South Africa: Toward a PlausibleC<strong>on</strong>tributi<strong>on</strong> from Criminal Justice to Ec<strong>on</strong>omic Growth, Harvard University Center forInternati<strong>on</strong>al Development Working Paper No. 131, August 2006101