Crime
• Crime is a moderate to low priority problem for small business, though 15 percent term it a “very high” priority. One reason for the relatively low ranking is that virtually no small businesses (2%) are located in self-defined high crime areas.
• The most common type of criminal activity against small business is vandalism, with 22 percent experiencing at least one act of vandalism in the last three years and 11 percent experiencing multiple acts. Employee theft, not including embezzlement, and burglary/robbery (classified as one type of criminal activity) followed.
• Fifty-two (52) percent of small, employing businesses had criminal activity perpetrated on or in those firms over the last three years.
• Criminal activity appears committed against businesses in some industries more often than in others with some types of crime more often associated with some industries than others. Retail, construction, and certain service industries appear more frequently subject than other industries. Shoplifting is most common to the retail industry. Larger, small businesses also have more problems in this regard than smaller, small businesses.
• The illicit activity of most frequent concern to small employers is burglary/robbery followed by employee theft, credit card fraud, and check fraud. Fourteen (14) percent were not concerned by any type of crime against their businesses.
• The median direct, uninsured losses incurred by a small business over the last three years due to criminal activity was about $1,000 with the 75th percentile at about $5,000.
• Changes made to businesses that experienced illegal actions over the last three years include: changes in operations and procedures (68%), changes in employee training (52%), and investments of $5,000 or more (17%).
• Seventy-nine (79) percent have “very much” or “much” confidence in their local police authority. Forty-two (42) percent know, on a first-name basis, one or more law enforcement officials who patrol the area in which their business is located.
• The first line of protection for 10 percent of small businesses is private security guards. Of those who have security guards, 51 percent express “very much” or “much” confidence in them.
• Among the crime prevention measures taken are: outside security lights turned on at night when located on the bottom or ground floor (86%), inside security lights turned on at night (64%), a security system (62%), tagging and numbering all major pieces of equipment and inventory (50%), checking police records on at least some prospective hires (46%), and requiring all invoices paid and checks signed to be reviewed by at least two people (40%).
• Insurers are more likely to provide small employers financial incentives to take crime prevention steps than to require small business owners to take such steps in order to obtain coverage.
