Impact of Crime on Small Businesses Report 2008 - Gauteng Online

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THE IMPACT OF CRIME ON SMALL BUSINESSESties (charges may have to be waived for small businesses), drop safes, and morefrequent banking. The Consumer Goods Council is currently working with a number<strong>of</strong> banks to reduce the need for businesses to hold cash on the premises.11.8 Collaborative multi-agency approachesStakeholders across the board stressed the importance <strong>of</strong> a partnership-based approachto tackle crime at the community level. <strong>Crime</strong> prevention is most likely tosucceed when it is tackled by a range <strong>of</strong> role players, including government departmentssuch as the Education and Social Development, local government, communitybased agencies, organised business and the general public.There was strong emphasis on the importance <strong>of</strong> involving the departments <strong>of</strong> Justiceand Correctional Services in formulating solutions, particularly around sharedresponsibilities such as conviction rates. Currently a large number <strong>of</strong> cases arestuck in the system, which undermines public confidence in both the police and thebroader criminal justice system.Respondents to the survey also saw a need for support for public education campaignsaimed at improving citizens’ moral attitudes and ethics, as well as interventionstargeted at young people to stop them from falling into crime, including jointinitiatives by the police and schools.11.9 The need for a specific focus on businesses in townships andinformal settlementsThe mere fact <strong>of</strong> a business being located in a township or informal settlement didnot appear to significantly increase its likelihood <strong>of</strong> being a victim <strong>of</strong> crime. However,the survey did clearly demonstrate that victims <strong>of</strong> crime in townships and informalsettlements were more likely to be exposed to violence and guns comparedto the sample as a whole. The most common crimes experienced by businesses intownships were burglaries and robberies. About a third <strong>of</strong> township/informal settlementburglaries were characterised by serious damage to or destruction <strong>of</strong> property.This would suggest the importance <strong>of</strong> effective and accessible victim support,accompanied by concerted efforts to encourage business owners to improve theirsecurity arrangements, and to get involved in community policing initiatives suchas CPFs and Neighbourhood Watch.Among business owners, those operating in townships and informal settlements arethe most disheartened and discouraged by crime. This set <strong>of</strong> respondents reportedthat they were most likely not to invest in or grow their businesses owing to thethreat <strong>of</strong> crime. They were also considerably more likely than the sample average86
THE IMPACT OF CRIME ON SMALL BUSINESSESto feel that fear <strong>of</strong> crime among clients or customers had resulted in a negative impacton their businesses, and were also much more likely to say that concerns aboutcrime among their suppliers had impacted negatively on their businesses. Fear <strong>of</strong>crime across the value chain clearly has a disproportionately negative impact ontownship businesses, and underlines the importance <strong>of</strong> addressing environmentalfactors - such as clean, well-signposted streets, well maintained public spaces andsecure parking, together with a visible policing presence - to try to encourage patronsand suppliers back to the area.Despite expressing considerably higher levels <strong>of</strong> concern about crime than businessesin other locations, respondents operating in townships and informal settlementswere considerably less likely than the sample average to have insurance coverage.Only a quarter <strong>of</strong> these businesses had insurance – compared to half in thesample as a whole. The proportion <strong>of</strong> businesses who had been turned down forinsurance was considerably higher than average in townships and informal settlements.For these businesses, the probability <strong>of</strong> closure following one or more incidents<strong>of</strong> serious crime appears considerable. Indeed, among the 42 individualsidentified through the survey who had closed their businesses owing to crime, overhalf had formerly operated in townships or informal settlements. It is <strong>of</strong> crucial importanceto develop affordable insurance solutions for businesses in these areas,and to persuade and incentivise them to take up insurance as a non-negotiable investmentin the long-term viability <strong>of</strong> their businesses.87
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FOREWORDveys are used to complement
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1 INTRODUCTIONTHERE IS broad agreem
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Impact of Crime on Small Businesses Report 2008 - Gauteng Online

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