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Entrepreneurship and crime: The case of new restaurant location decisions

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  • Sloan, CarlyWill
  • Caudill, Steven B.
  • Mixon, Franklin G.

Abstract

This paper examines the impact of various violent crimes on restaurant location decisions in a single city, Memphis, TN. Using location information on crimes and newly opened restaurants, we are able to match crimes and restaurants in parcels we construct. We examine the impact of the number of burglaries, assaults, rapes, and murders in each of 400 to up to 1,000,000 parcels occurring from 2009–2013 on the number of restaurants opening in 2014 in models including dummy variables capturing neighborhood effects. Regression results indicate that each crime is positively related to the number of new restaurants in a parcel. This suggests that even with the crime problem, these locations provide sufficient benefits, perhaps population density, which make them attractive to restaurant entrepreneurs.

Suggested Citation

  • Sloan, CarlyWill & Caudill, Steven B. & Mixon, Franklin G., 2016. "Entrepreneurship and crime: The case of new restaurant location decisions," Journal of Business Venturing Insights, Elsevier, vol. 5(C), pages 19-26.
    • Handle: RePEc:eee:jobuve:v:5:y:2016:i:c:p:19-26
    DOI: 10.1016/j.jbvi.2015.12.003
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    Cited by:

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    3. Derya Celik Turkoglu & Mujde Erol Genevois, 2020. "A comparative survey of service facility location problems," Annals of Operations Research, Springer, vol. 292(1), pages 399-468, September.
    4. Yang, Yang & Cao, Yang & Yang, Li-Ting (Grace), 2017. "Product diversification and property performance in the urban lodging market: The relationship and its moderators," Tourism Management, Elsevier, vol. 59(C), pages 363-375.
    5. Chang, Tom Y. & Jacobson, Mireille, 2017. "Going to pot? The impact of dispensary closures on crime," Journal of Urban Economics, Elsevier, vol. 100(C), pages 120-136.
    6. Yung Hyeock Lee & In Hyeock (Ian) Lee, 2022. "A regional analysis of crime heterogeneity and small- and medium-sized enterprise (SME) location choices: recent evidence from South Korea," Asian Business & Management, Palgrave Macmillan, vol. 21(4), pages 569-597, September.
    7. McDaniel, Michael & Ge, Jianhua & Yuan, Wenhao, 2022. "Social impacts of entrepreneurship: Does entrepreneurial ecosystem support reduce homicide?," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    8. McDaniel, Michael & Sutter, Chris & Webb, Justin W. & Elgar, Frank J. & Parker, Karen F. & Nwachu, Jay, 2021. "Breaking the cycle of crime: Promoting the positive social spillover potential of entrepreneurship," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    9. Nicolò Barbieri & Ugo Rizzo, 2023. "The impact of crime on firm entry," Journal of Regional Science, Wiley Blackwell, vol. 63(2), pages 446-469, March.

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    More about this item

    Keywords

    L26; Keywords:; Entrepreneurship and crime; Hot spots; Restaurant location; Urban economics;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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