Home → Media information → 2000 media releases → Small business and crime: consumers pay $3.2 billion a year (13 Dec 2000)
Media Release
Media release from Senator, the Hon Amanda Vanstone, Minister for Justice and Customs
Small business and crime: consumers pay $3.2 billion a year
13 December 2000
Minister for Justice and Customs, Amanda Vanstone today announced the first results from Australia's largest ever survey of crime against small businesses in the retail, food, liquor, newsagent, pharmacy and service stations.
"The survey shows that the rates of crime against small business, and the cost of crimes for small businesses are simply unacceptable," Senator Vanstone said.
"It is estimated, according to the Australian Institute of Criminology paper, Crimes Against Small Business in Australia: A Preliminary Analysis, that crime costs small business $3.2 billion a year."
"But there should be no doubt about who bears this cost. It is consumers who ultimately pay to cover these losses."
"Small businesses is the driving force of our economy, but is particularly vulnerable to crime because operators find it difficult to absorb the costs of crime."
"On average, small businesses who are the victims of crime lose almost $8,000 [$7,818] a year, with losses ranging from as little as $3 to as much a $372 000."
"These losses and the psychological impact of violent crime can be enough to convince many small business owners to close shop."
"Just over half of the businesses who responded reported having experienced crime and many of those are repeatedly victimised. On average, businesses subjected to crime experienced 38 incidents in the 12 month period preceding the survey."
"Liquor and hotel/motel businesses experienced the greatest rate of crime with 75% being victims of crime in the 12 months before the survey."
"Pharmacies (62%), newsagencies and post offices (58%), non-food retail premises (56%) and general stores/supermarkets (55%) also experienced very high rates of crime."
"Small businesses are most likely to be the victims of shoplifting (42% of businesses surveyed) and burglary (40% of businesses surveyed)."
They survey of crime against small businesses was undertaken in 1999 by the Australian Institute of Criminology, in conjunction with the Council of Small Business Associations of Australia. Just over 4 200 businesses responded. In 1999 small businesses comprised 99.6% of the non-government commercial sector.