Crime's Impact on the Survival Prospects of Young Urban Small Businesses

The authors investigate the empirical link between prevailing levels of crime and the viability of small businesses. Using confidential microdata from the U.S. Census Bureau's Characteristics of Business Owners Survey, they find, on balance, that young firms operating in high-crime niches in ur...

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Bibliographic Details
Published in:Economic development quarterly 2008-08, Vol.22 (3), p.228-238
Main Authors: Bates, Timothy, Robb, Alicia
Format: Article
Language:English
Subjects:
Censuses
Companies
Crime
Disadvantaged
Owners
Prospects
Rational Choice
Small and medium sized enterprises
Small business
Small Businesses
U.S.A
United States of America
Urban Areas
Urban Crime
Urban economics
Viability
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Summary:The authors investigate the empirical link between prevailing levels of crime and the viability of small businesses. Using confidential microdata from the U.S. Census Bureau's Characteristics of Business Owners Survey, they find, on balance, that young firms operating in high-crime niches in urban America appear not to be disadvantaged by crime. Crime's impact may certainly be harmful, with other factors being constant, but the crux of the findings is that other factors are not constant. Firms most negatively affected by crime do not appear to be less viable than otherwise identical firms reporting that crime has no effect on their businesses. High-crime niches may in fact be rational choices for some business owners, present and potential.
ISSN:0891-2424
1552-3543
DOI:10.1177/0891242408321255