Crime has a devastating effect on the profitability and viability of many small enterprises, according to the findings of a Small Business Project survey released on Wednesday.

The survey found that small business owners were very worried about crime affecting their business and their own safety.

"They feel unsafe and are pessimistic about any prospect of relief."

According to the survey, two thirds of business owners interviewed did not see any decrease in crime levels over the next year and over a third expected crime levels to rise.

The survey covered 446 small and emerging businesses, almost all owned by previously disadvantaged groups in Cape Town, Johannesburg and Durban.

It covered businesses located in cities, urban townships, shopping centres, office and industrial parks and large townships and informal settlements.

Burglaries and robberies were noted as the most prominent crimes affecting business owners.

Fifty-four percent of those interviewed cited crime as the overall major problem affecting small businesses.

"The perception of crime as a key challenge facing business was particularly prominent among business owners in shopping centres and malls, with over 70 percent, compared to businesses in townships with 63 percent, and inner city businesses, with 54 percent."

Of the 446 respondents, 243 businesses or about 54 percent had experienced an incident of crime this year.

"Businesses in Cape Town was far more likely to have experienced an incident of crime instead of Johannesburg or Durban.

"Among the 243 businesses that had been affected by crime, a total of 578 incidents were experienced with an average of 2.4 incidents per business," the survey reported.

Reluctant to invest in even basic burglar proofing

The survey also found that a large number of small businesses had very little if any security and were reluctant to invest in even basic burglar proofing because of the expense involved.

"Many small businesses introduce very in-expensive and very in-effective security measures such as a single unarmed night guard with no radio communication which does nothing to protect the business and puts the guard himself in considerable danger.

"More profitable companies are able to employ armed response."

The SA victim survey found that over a quarter of those interviewed said they would not start their own business because they feared violent crimes.

Of the 446 small businesses that was surveyed, 58 were from Johannesburg, 141 from Cape Town and 147 was from Durban.

Sapa