Reduced investment in small, inner-city enterprises
Nature: The present day tendency for business and industry to move towards developing large enterprises requiring massive capital investment has resulted in private financial support has being withdrawn from small business enterprises in many inner-city areas. The style of operation of such businesses may also obscure their investment potential. Local inner city businesses often project an image of high risk, low volume, and a short future. The current "redlining" practices of banks block loans for remodelling or expansion, and insurance companies may make it difficult to secure adequate coverage for reasonable rates. The heavy flow of residents' income outside their neighbourhoods further weakens the operating base by separating local enterprise from local capital. Beyond this, highly scattered employment patterns obscure the availability of a local labour pool for a potential local industry. Until the commercial and industrial potential of urban inner city communities becomes visible, desperately needed capital for business, industrial and housing developments will be denied.
Problem Type: F: Fuzzy exceptional problems
Date of last update 01.01.2000 – 00:00 CET