| Publication |
2011.
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| Summary/Abstract |
This study sought to investigate the impact of firm and non-firm characteristics on crime incidence in South Africa using a Probit model and 2007 data from World Bank enterprise surveys. Results show that the firm characteristics in the country that increase the likelihood of being subjected to crime is the size of the firm, ownership structure (foreign or locally owned), and market orientation. Small firms appear to be more vulnerable to criminal attack, probably because they lack resources to invest in quality security systems. The study also found that firms that are foreign owned and are involved in export experience less incidence of crime compared to others. This can be partly attributed to the fact that most of these outward-oriented or foreign-owned firms are relatively large in size and are thus able to spend more on security systems that are effective in detecting and deterring crime. There is therefore a need for government, together with the business community, to come up with affordable but effective security measures to assist small establishments, locally owned and inward-oriented firms to detect and combat crime. This would lead to greater industrial growth, investment promotion and employment creation.
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