Crime's Impact on the Survival Prospects of Young Urban Small Businesses
30 Pages Posted: 11 Nov 2007
Date Written: October 2007
Abstract
High prevailing levels of criminal activity have numerous impacts on the viability of urban small businesses and the various impacts are not uniformly negative. It is the negative impacts, however, that are most often noted. Either the perception or reality of rampant crime can scare away customers, potential employees, lending institutions, even casualty insurance underwriters. Yet, competitors may also be driven away. Operating in a high-crime area can be advantageous, on balance, for some firms. Our analysis of nearly 5,000 urban businesses started between 1986 and 1992 indicates that those most seriously impacted by crime exhibit no measureable disadvantage regarding firm size, capitalization, survival rates, or other traits, relative to firms whose owners report that crime has not impacted them negatively.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Sticking it Out: Entrepreneurial Survival and Liquidity Constraints
By Douglas Holtz-eakin, David Joulfaian, ...
-
Entrepreneurial Decisions and Liquidity Constraints
By Douglas Holtz-eakin, David Joulfaian, ...
-
Liquidity Constraints, Household Wealth and Entrepreneurship
By Annamaria Lusardi and Erik Hurst
-
What Makes an Entrepreneur? Evidence on Inheritance and Capital Constraints
-
The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment