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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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