Crime

1. 1

   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.
   

2. 2

   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.
   

3. 3

   Fifty-two (52) percent of small, employing businesses had criminal activity perpetrated on or in those firms over the last three years.
   

4. 4

   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.
   

5. 5

   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.
   

6. 6

   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.
   

7. 7

   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%).
   

8. 8

   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.
   

9. 9

   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.
   

10. 10

    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%).
    

11. 11

    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.

Volume 8, Issue 5, 2008
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation

• 1Is crime prevention a very high, high, moderate, low or very low priority for management in your business?
• 2A(types of criminal activity) Vandalism
• 2aOf the types of criminal activity just mentioned, which ONE is of most concern to you?
• 2B(types of criminal activity) Shoplifting
• 2C(types of criminal activity) Illegal sale of controlled substances or drugs
• 2D(types of criminal activity) Check fraud
• 2E(types of criminal activity) Embezzlement (Not including employee theft.)
• 2F(types of criminal activity) Robbery or Burglary
• 2G(types of criminal activity) Employee theft (Not including embezzlement)
• 2H(types of crimial activity) Credit card fraud
• 2I(types of criminal activity) Violence on a person, such as mugging
• 2J(types of criminal activity) Stolen deliveries
• 2K(types of criminal activity) Threats or shake-downs
• 2L(types of criminal activity) Other
• 3Please estimate the amount of uninsured losses, including repair or replacement, that your business incurred directly in the last three years due to crime.
• 4Did you report all, most, some or none of this criminal activity to the police?
• 5A(due to crime) Changes in your operations or procedures
• 5B(due to crime) Changes to employee training
• 5C(due to crime) An investment in security measures of $5,000 or more
• 5D(due to crime) An investment in security measures of $1,000 or more
• 6Do you know, on a first name basis, any law enforcement official who patrols or otherwise polices the area in which your business is located? Do NOT include private security guards.
• 7Do you strongly agree, agree, disagree, or strongly disagree that you feel a police presence in the neighborhood of your business protecting your person, your employees, and your property?
• 8Do you have very much, much, some, little, or very little confidence in your local police authority?
• 9Within the last three years, has the local police or sheriff’s department inspected your place of business and made crime prevention recommendations?
• 10Within the last three years, has the local police or sheriff’s department organized or participated in a program, panel, or meeting with area business owners on ways and means to prevent crime?
• 11Do you have a Neighborhood Watch-type program in the area where your business is located?
• 11aIs the Neighborhood Watch-type program in your area a strong one or a weak one?
• 11bDo you know all, most, some, or none of the owners or managers of neighboring businesses?
• 12Are private security guards, paid either by you or a landlord, the first line of protection for your business rather than police?
• 12aDo you have very much, much, some, little, or very little confidence in your private security guards?
• 13Is your business protected by a security system of some type to prevent intruders?
• 14Does your business have a security camera or cameras?
• 15Do you, or someone on your behalf, check police records of all your prospective employees, some prospective employees, only key prospective employees, or none of them, before hiring them?
• 16Do you train relevant employees to look for fraudulent credit cards and checks?
• 17Do you, or a member of your household, pay ALL the invoices, sign ALL the checks, and record ALL incoming payments?
• 18Do you require that ALL invoices paid, ALL checks signed, and ALL incoming payments recorded be reviewed by at least two people?
• 19Do you tag and number all major pieces of business equipment and inventory?
• 20Do you have inside security lights that are turned on at night?
• 21Is your business located on the ground or street floor?
• 21aDoes your business have burglar-proof window panes or a metal screen over them?
• 21bDo you have an outside security light or lights that are turned on at night?
• 22Does your insurance company require you to take specific crime prevention steps before it will insure you?
• 23Does your insurance company give you discounts or rebates for taking specific crime prevention steps?
• 24In the last three years, has your insurance company provided you any information or assistance on steps you can take to prevent crime?
• 25Would you describe the area in which your business is located as a:?