THE EDITOR, Sir:
WHILE INNER-CITY COMMUNITIES of the Kingston Metro-politan Area are densely populated with residents of a wide variety of income sources, business research has proven that many of the small inner-city communities are not large enough to attract new retail entrants. Based on the data examined in recent research in the Kingston Metropolitan Area, the scope for retail investment is limited for a number of reasons :
The prevalence of politically-polarised and geographically-secluded communities means most communities are closed to the outside world and therefore, 'cross-border trading' or cross-community transactions are not feasible. Therefore, these small communities will have to wield significant spending power to sustain a medium-size profi-table operation. This entry barrier nullifies the general 'density of population' theory that characterised most North American inner-city neighbourhoods.
The deep entrenchment of extortion fees charged by the community leaders presents a major financial cost to the few community shops that currently exist and will serve as a deterrent to new retail entrants.
Given the high levels of unemployment that characterise these inner-city communities coupled with the inconsistent and sometimes questionable income sources of some residents, retail investors would consider entry into these inner-city communities as imprudent and unsustainable. Therefore, the unpredictable nature of the local economies in the inner city discourages current retailers from further investment and deters new ones.
The levels of crime and violence and the social and political tensions of communities make the threat to peace and inner-city market stability a real deterrent. A prerequisite of urban renewal success is the reduction of crime and violence: High levels of criminality are antithetical in the process of development that requires orderliness, social cohesion, and a stable environment. This involves dismantling current parallel governance structures which undermine legal authority and are challenges to general law and order.
Many of these communities are residential and non-commercial zones, so there is a scarcity of space and business locations to operate legal entities.
The high levels of illiteracy, poor work ethic and low skill levels are inimical to good business prospects and bad indicators to those who already operate there in relation to further expansion. The labour force must be trained in relevant skills with flexibility to fit in many job functions.
The typical inner-city shopper shows a strong preference for shopping in the large shopping malls rather than in the neighbourhood shops. These residents view shopping more as a leisure activity that provides the opportunity to socially interact with members of the broader society. Shopping is a form of recreation that provides enjoyment and relaxation. It gives them the chance to freely express themselves, to feel socially included and feel a part of the festive experience of shopping. The typical inner-city resident sees shopping as he or she sees migrating: A chance to 'escape from the prison' of his or her communities and be a part of the broader society.
I am, etc.,
DELROY SCARLETT
dhsscarlett@yahoo.com
St. Andrew
Via Go-Jamaica
