Impact of Crime on Small Businesses Report 2008 - Gauteng Online

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ENDNOTES1234567South Africa: An Assessment <strong>of</strong> the Investment Climate, World Bank, December 2005http://www1.worldbank.org/rped/documents/ICA008.pdfhttp://www.gt.co.zaNational Victims <strong>of</strong> <strong>Crime</strong> Survey South Africa, 2003Christopher Stone (2006) <strong>Crime</strong>, Justice, and Growth in South Africa: Toward aPlausible Contribution from Criminal Justice to Economic Growth, CID Working Paperno. 131, Center for International Development, Harvard University, p2.Libor Krkoska and Katrin Robeck, EBRD working paper: The impact <strong>of</strong> crime on theenterprise sector: Transition versus non-transition countries, July 2006,www.ebrd.org/pubs/econo/wp0097.pdfBusiness Report, 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 Small Business Survey Report, Gauteng 2006, Prepared for FinMark Trust andGauteng Enterprise Propeller, December 2006. The study assessed the degree <strong>of</strong>sophistication <strong>of</strong> small businesses operating in Gauteng, ranging from the informal streetvendors to more sophisticated and sustainable businesses. Eighty seven percent <strong>of</strong> smallbusinesses covered by the Finscope study were owned and run by black owners. Themajority <strong>of</strong> black owned businesses were in the informal sector.910111213141516"Enhancing Urban Safety and Security: Global Report on Human Settlements, UN-HABITAT, 2007Generation Next Survey Results, published in the Sunday Times, 27 May 2007Household and Business Satisfaction Surveys, 2006, study commissioned by theCorporate Planning Unit, City <strong>of</strong> Johannesburg, compiled by AA Lightelm and DHTustin, Bureau <strong>of</strong> Market Research UNISA, June 2006Sample size 441 - 5 respondents declined to categorise the area in which they operated.These figures are in line with the findings <strong>of</strong> the 2003 National Victims <strong>of</strong> <strong>Crime</strong>Survey, which found that 53% <strong>of</strong> South Africans believed that crime in their area <strong>of</strong>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/Monographs/No101/Chap4.htm)See Annex 1 for detailed comparative dataThis finding corresponds with the findings <strong>of</strong> the World Bank Investment Climate study,which found that, after controlling for size, ownership, and costs and losses associatedwith crime, firms in Cape Town were most likely to suffer losses from crime.Ken Pease, Repeat Victimisation: Taking Stock, <strong>Crime</strong> Detection and Prevention SeriesPaper 90, UK Home Office, 1998
THE IMPACT OF CRIME ON SMALL BUSINESSES171819202122232425262728293031Police Research Series Paper 95 - Business as Usual: An Evaluation <strong>of</strong> the SmallBusiness and <strong>Crime</strong> Initiative, Nick Tilley, Matt Hopkins, Editor: Barry Webb, HomeOffice Policing and Reducing <strong>Crime</strong> Unit, Research, Development and StatisticsDirectorate, United Kingdom, 1998 – reporting on a study <strong>of</strong> small businesses inLeicesterPerceptions are presented as the percentage <strong>of</strong> businesses reporting that a particularcrime is prevalent in an area. Actual experience is presented as the number <strong>of</strong> times aparticular type <strong>of</strong> crime was experienced divided by the number <strong>of</strong> businesses in thesample.Business Environment and Enterprise Performance Survey (BEEPS), cited by Krkoskaand Robeck, 2003; Jamaica: The Road to Sustained Growth, Country EconomicMemorandum, Report no. 26088-JM, World Bank, December 2003Turnover is assumed to be the mid point <strong>of</strong> the turnover band in column 1The mean cost <strong>of</strong> crime for firms across the sample is very similar to that found by theAIC in the 1999 study <strong>of</strong> small retailers in Australia – see Appendix 2 for details.Jamaica: The Road to Sustained Growth, Country Economic Memorandum, Report no.26088-JM, World Bank, December 2003Gaviria, A., 2002, “Assessing the Effects <strong>of</strong> Corruption and <strong>Crime</strong> on Firm Performance:Evidence from Latin America”, Emerging Markets Review, Vol. 3(3), pp245-268Transitional economies: Libor Krkoska and Katrin Robeck, EBRD working paper, July2006John Sloan and Madhava Bodapati, UAB criminologists: <strong>Impact</strong> <strong>of</strong> crime on smallbusinesses in downtown Birmingham and Southside, UAB Magazine, Spring 1998, Vol.18, Number 2Jamaica: The Road to Sustained Growth, Country Economic Memorandum, Report no.26088-JM, World Bank, December 2003John Sloan and Madhava Bodapati, UAB criminologists: <strong>Impact</strong> <strong>of</strong> crime on smallbusinesses in downtown Birmingham and Southside, UAB Magazine, Spring 1998, Vol.18, Number 2; Transitional economies: Libor Krkoska and Katrin Robeck, EBRDworking paper, July 2006The impact <strong>of</strong> crime in terms <strong>of</strong> loss <strong>of</strong> customers appears to considerably higher forsmall businesses compared to medium and large firms. The 2007 Grant Thornton surveyfound that 18% <strong>of</strong> medium to large businesses reported loss <strong>of</strong> customers as a result <strong>of</strong>crime – compared to almost half <strong>of</strong> our small business sample.Jamaica: The Road to Sustained Growth, Country Economic Memorandum, Report no.26088-JM, World Bank, December 2003Taylor, N. & Mayhew, P. 2002: Financial and Psychological Costs <strong>of</strong> <strong>Crime</strong> for SmallRetail Businesses, Trends and Issues in <strong>Crime</strong> and Criminal Justice, no. 229, AustralianInstitute <strong>of</strong> Criminology, CanberraChristopher Stone, <strong>Crime</strong>, Justice, and Growth in South Africa: Toward a PlausibleContribution from Criminal Justice to Economic Growth, Harvard University Center forInternational Development Working Paper No. 131, August 2006101
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FOREWORDveys are used to complement
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1 INTRODUCTIONTHERE IS broad agreem
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