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Crime, community social capital and entrepreneurship: Evidence from Australian communities

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  • Awaworyi Churchill, Sefa
  • Hayward, Mathew
  • Smyth, Russell
  • Trinh, Trong-Anh

Abstract

Crime is an anti-social blight on communities that increases the cost of doing business, including for entrepreneurs. Drawing on Australian longitudinal data, this study examines the links between crime rates and the propensity for entrepreneurship within communities. We do so by matching propensity for entrepreneurship with types of crime found at the community level where crime occurs. We find that higher total crime rates, crimes against the person and property crime, significantly lower the propensity for entrepreneurship in communities. We also show that the core facets of community social capital – trust, membership in voluntary organizations and support and cooperation – mediate this relationship.

Suggested Citation

  • Awaworyi Churchill, Sefa & Hayward, Mathew & Smyth, Russell & Trinh, Trong-Anh, 2023. "Crime, community social capital and entrepreneurship: Evidence from Australian communities," Journal of Business Venturing, Elsevier, vol. 38(2).
    • Handle: RePEc:eee:jbvent:v:38:y:2023:i:2:s0883902623000058
    DOI: 10.1016/j.jbusvent.2023.106291
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    Cited by:

    1. Drydakis, Nick, 2024. "Business Disruptions Due to Social Vulnerability and Criminal Activities in Urban Areas," IZA Discussion Papers 17321, Institute of Labor Economics (IZA).
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    3. Guo, Liwen & Cheng, Zhiming & Tani, Massimiliano & Cook, Sarah & Zhao, Jiaqi & Chen, Xi, 2022. "Air Pollution and Entrepreneurship," GLO Discussion Paper Series 1208, Global Labor Organization (GLO).
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    5. Shantz, Angelique Slade & McMullen, Jeffery S., 2024. "Journal of business venturing 2023 year in review: The year of the whole-person entrepreneur," Journal of Business Venturing, Elsevier, vol. 39(6).
    6. Klaus Ackermann & Sefa Awaworyi Churchill & Russell Smyth, 2023. "Broadband Internet and Cognitive Functioning," The Economic Record, The Economic Society of Australia, vol. 99(327), pages 536-563, December.
    7. Awaworyi Churchill, Sefa & Asante, Augustine, 2023. "Neighbourhood crime and obesity: Longitudinal evidence from Australia," Social Science & Medicine, Elsevier, vol. 337(C).
    8. Drydakis, Nick, 2024. "Business Disruptions Due to Social Vulnerability and Criminal Activities in Urban Areas," GLO Discussion Paper Series 1495, Global Labor Organization (GLO).
    9. Sanchez-Ruiz, Paul & Wood, Matthew S. & Michaelis, Timothy L. & Suarez, Jaime, 2023. "Entrepreneurs as prime targets: Insights from Mexican ventures on the link between venture visibility and crime of varying severity," Journal of Business Venturing, Elsevier, vol. 38(6).

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