Although neighborhood crime levels can be impacted by the presence of businesses nearby, it is also the case that crime in the neighborhood can impact businesses. High levels of crime can reduce patronage of businesses, which can result in them going out of business, or choosing to relocate. This study uses rich annual data on businesses and crime events in the Southern California region over a number of years to explore how nearby crime events impact business decisions to go out of business, move, or even where to move. The study finds that in general, higher violent and property crime are significantly associated with both business failure and mobility, and that higher crime in a destination neighborhood reduces the likelihood that a business locates there. The study also presents findings specific to industries.
You can access the article by Dr. John R. Hipp, Seth Williams, Dr. Young-an Kim, and Dr. Jae Hong Kim in Social Science Research entitled, “Fight or Flight? Crime as a Driving Force in Business Failure and Business Mobility”.
Get it here: https://www.sciencedirect.com/science/article/pii/S0047235218303775
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