Abstract

http://ssrn.com/abstract=1028521
 
 

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


Timothy Bates


Wayne State University; Wayne State University - College of Urban, Labor, & Metropolitan Affairs

Alicia Robb


University of California, Berkeley - Coleman Fung Institute for Engineering Leadership; Kauffman Foundation; University of Colorado at Boulder; Federal Reserve Banks - Federal Reserve Bank of Atlanta; University of Deusto - Basque Institute of Competitiveness; Marin Economic Consulting

October 2007

US Census Bureau Center for Economic Studies Paper No. CES-WP-07-30

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.

Number of Pages in PDF File: 30

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Date posted: November 11, 2007  

Suggested Citation

Bates, Timothy and Robb, Alicia, Crime's Impact on the Survival Prospects of Young Urban Small Businesses (October 2007). US Census Bureau Center for Economic Studies Paper No. CES-WP-07-30. Available at SSRN: http://ssrn.com/abstract=1028521 or http://dx.doi.org/10.2139/ssrn.1028521

Contact Information

Timothy Bates (Contact Author)
Wayne State University ( email )
Detroit, MI 48202
United States
(313) 577-0769 (Phone)
Wayne State University - College of Urban, Labor, & Metropolitan Affairs ( email )
Detroit, MI 48202
United States
Alicia Robb
University of California, Berkeley - Coleman Fung Institute for Engineering Leadership ( email )
130 Blum Hall #5580
Berkeley, CA 94720-5580
United States
Kauffman Foundation ( email )
4801 Rockhill Road
Kansas City, MO 64110-2046
United States
HOME PAGE: http://www.kauffman.org/kfs
University of Colorado at Boulder ( email )
1070 Edinboro Drive
Boulder, CO 80309
United States
Federal Reserve Banks - Federal Reserve Bank of Atlanta
1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States
University of Deusto - Basque Institute of Competitiveness
Mundaiz 50
San Sebastián, 20012
Spain
Marin Economic Consulting ( email )
United States
HOME PAGE: http://marin-economic-consulting.com/
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