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ANJE says small business hurts most from rising crime

A recent study sponsored by the Young Entrepreneurs Association (ANJE) points out that micro, small and medium-sized business (MSMEs) are the most affected by reduced security in the Dominican Republic. The study was presented to the press by the president of ANJE, Eugene Rault Grullón and the executive director of the business organization, Karina Mancebo.

The analysis, “Reflections on Citizen Insecurity and the Business Climate”, points to the high costs small business must assume for security and recovery after falling victim to a crime.

As reported, small businesses spend up to RD$1.2 million (around US$25,200) per year in private security services. Repairing damage or re-stocking goods caused by crime cost on average RD$459,000 (around US$9,600) per year.

75.5% of the businesses reported security has worsened in the past 12 months.

The research was carried out by Deloitte RD.

The president of ANJE, Eugene Rault Grullón expressed his concern over the findings of the study. He said that the security costs of a small company can represent around 3% of annual sales. When costs for recovering from crime are factored in, small business security costs are 6%, the study reveals.

ANJE expressed concern over the “low level of response” from the authorities given the severity of the problem. He said that 44% of MSMEs who reported a crime did not receive an official response. In only 2.4% of the cases was the perpetrator of the crime arrested and subsequently convicted and sentenced.

The study showed that 28.1% of the companies did not report crimes to the authorities, with 34.6% mentioning lack of confidence [in the authorities], 30.8% felt that it was a waste of time to report the theft, while 15.4% preferred to deal with the matter on their own.

The crimes were mostly robbery (24.6%) and armed robbery (17.9%). 11.9% of the crimes were fraud, 11.2% forgery of documents, 10.4% damage to property, 7.5% bank fraud, 6% extortion, 5.2% IT crime, among others.

54.7% of the MSME owners reported that over the past year, at least one act of crime against their companies had been committed by persons within the business itself, predominantly by employees of the company.

To prepare the report, 128 multi-sector companies were sampled. The increase in insecurity affects the business climate, reduces company productivity, and results in a deterioration of the work environment and worker productivity.

Eugene Rault Grullón said the study is relevant on the occasion of the 27 February 2017 Annual Report rendered by President Danilo Medina where he announced new measures for improving citizen safety.

Source: DR1, Elnuevodiario

Mar 4, 2017

Category: DR News |

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Last updated May 20, 2017 at 11:06 PM
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