Impact of Crime on Small Businesses Report 2008 - Gauteng Online

More documents

Recommendations

Info

THE IMPACT OF CRIME ON SMALL BUSINESSESTable 8: Probability <strong>of</strong> firm experiencing an incident <strong>of</strong> crimeTurnover per year Mean MedianR1 million 1.91 1.50Total 1.36 1.00The results suggest that for the sample as a whole, the average probability <strong>of</strong> experiencinga crime is 1.36. The probability <strong>of</strong> being exposed to crime is U-shaped -very small firms and larger firms within the sample have higher probabilities <strong>of</strong>being victims <strong>of</strong> crime.Chart 29 shows the mean probability that an entrepreneur or small firm will experiencea crime in one year (a value <strong>of</strong> 1 means that it is a statistical certainty that theaverage firm will experience a crime). As Chart 29 shows, the smallest entrepreneursin our sample will experience an average <strong>of</strong> 1.4 crimes in a year. Firms in thelargest size bands experience well over 1 crime per year on average, with firmsturning over just under R1 million experiencing a mean <strong>of</strong> 3 crimes a year. Thechart suggests that the risks <strong>of</strong> crime are highest for the most vulnerable small entrepreneursand for companies that are just on the verge <strong>of</strong> entering the ‘first economy.’<strong>Crime</strong> therefore seems to hit the poorest and the most successful entrepreneurshardest – a particularly unfortunate pattern for growth and development.44
THE IMPACT OF CRIME ON SMALL BUSINESSESChart 29:Mean probability <strong>of</strong> experiencing a crime in a year (by meanturnover)3.532.521.510.50R1mThe likely impact <strong>of</strong> crime on firms is the probability <strong>of</strong> a firm being affected bycrime multiplied by the costs <strong>of</strong> crime to the firm if it is affected. This is <strong>of</strong>tencalled the ‘expected cost.’ The expected costs <strong>of</strong> crime are presented in Table 9below. Columns 2 and 3 present the probability <strong>of</strong> being a victim <strong>of</strong> crime multipliedby the average cost <strong>of</strong> the crime incident (column 2) and the median cost(column 3). Columns 4 and 5 present these as a proportion <strong>of</strong> turnover. 20 Columns6 and 7 present the actual costs <strong>of</strong> a crime incident as a proportion <strong>of</strong> turnover butdo not take into account the probability <strong>of</strong> a crime affecting the firm. The medianvalues are influenced less by crimes with high costs and are thus more reflective <strong>of</strong>the ‘typical’ firm.45
Page 1 and 2: THE IMPACT OF CRIMEON SMALL BUSINES
Page 3 and 4: Table of contentsF
Page 5 and 6: FOREWORDveys are used to complement
Page 7 and 8: 1 INTRODUCTIONTHERE IS broad agreem
Page 9 and 10: THE IMPACT OF CRIME ON SMALL BUSINE
Page 43: THE IMPACT OF CRIME ON SMALL BUSINE
Page 49 and 50: 6 COSTS OF PRECAUTIONSTHE COSTS OF
Page 53 and 54: 7 OPPORTUNITY COSTSTHE STUDY FOUND
Page 69 and 70: 9 PSYCHOLOGICAL IMPACTIn a crime-ri
Page 95 and 96:
THE IMPACT OF CRIME ON SMALL BUSINE
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
show all

Impact of Crime on Small Businesses Report 2008 - Gauteng Online

Create successful ePaper yourself

Delete template?

Save as template?