Impact of Crime on Small Businesses Report 2008 - Gauteng Online

THE IMPACT OF CRIME ON SMALL BUSINESSES7.9 Competition from sale <strong>of</strong> stolen goods in the areaTwenty two percent <strong>of</strong> respondents stated that their businesses had suffered as aresult <strong>of</strong> competition from sales <strong>of</strong> stolen goods in the area. This figure was highestfor firms in townships and informal settlements, at 35 percent, and firms in highcrime areas (30 percent). Among retail businesses the impact <strong>of</strong> competition fromstolen goods was slightly higher than average, particularly for low level vendors(28 percent). This result is to be expected, given that these low level vending enterprisesfor the most part sell small, highly tradable items such as CDs and DVDs,cell phones and electronic equipment – items which are easily stolen and resold.7.10 Personal experience <strong>of</strong> crime and financial viability <strong>of</strong> businessRespondents were asked whether incidents <strong>of</strong> crime experienced in their personalcapacity had impacted on the financial viability <strong>of</strong> their businesses. Forty five percent<strong>of</strong> respondents stated that the financial viability <strong>of</strong> their businesses had beennegatively affected as a result <strong>of</strong> their personal experience <strong>of</strong> crime. This figurewas highest for businesses operating in townships and informal areas (55 percent)(sample size: 93).7.11 Business closureOnly two respondents in our sample indicated that they were likely to sell or closetheir businesses as a result <strong>of</strong> crime. Both <strong>of</strong> these were located in areas perceivedto be characterised by high crime levels, and both experienced three or more incidents<strong>of</strong> crime in the past year.All respondents were asked whether they knew <strong>of</strong> any businesses in the area thathave closed down or relocated as a result <strong>of</strong> crime. Fourteen percent stated thatthey knew <strong>of</strong> such cases.Through a process <strong>of</strong> snowballing, the survey team was able to identify a smallsample <strong>of</strong> 42 individuals who had closed down their businesses, and who statedtheir primary reason for doing so as the effect <strong>of</strong> or concerns about crime. Just overhalf <strong>of</strong> these had formerly operated in townships or informal settlements, a quarterin densely developed suburban areas, and 20 percent in inner cities. Just under halfhad been fixed premises retailers, including food and convenience stores, about athird were informal sector retail vendors, and sixteen percent had been small manufacturers.These businesses represented a broad range <strong>of</strong> turnover bands, from R10 000 toR15 000 per annum, all the way to R5 million per annum. Forty percent turnedover between R25 000 and R75 000 per annum, and a further 30 percent fell in the63