Absentee business owner

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An absentee business owner is one who does not personally manage the business but owns it or does not live in the community in which the business operates. Studies show that money spent locally circulates back into the community three times as much when it is not spent with an absentee-owned business.[1] Local currency has been implemented in some communities as a countermeasure to this effect. Neighborhood investment, in which members of the community are given opportunities to become partial owners of new developments, is another method.[2]

In Brazil, studies found that more than a third of the profits generated from tourism were exported to absentee business owners.[3] In Vietnam, the economic expansion of the 1990s was associated with a rise in absentee business owners.[4] There has also been concern that tourism profits in Southern Africa go to absentee business owners.[5]

Absentee business owners can be more vulnerable to theft by employees,[6] especially when recordkeeping is turned over to employees, unless proper internal controls and review are implemented.[7] In the United States, many business-owning military reservists have become absentee business owners during long tours of duty in Iraq and Afghanistan.[8]

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References[edit]

  1. ^ Reporter, RICK WILLISStaff. "Economists: Doing business locally is a form of stimulus". starherald.com. Retrieved 2021-10-14.
  2. ^ http://legacy.signonsandiego.com/uniontrib/20060409/news_mz1b9neighbo.html
  3. ^ Wagner, John E. (1997), Estimating the economic impacts of tourism, 24, Annals of Tourism Research, pp. 592–608
  4. ^ Patrick J. Keenan (February 2007), Do Norms Still Matter? The Corrosive Effects of Globalization on the Vitality of Norms, University of Illinois College of Law Law and Economics Working Papers
  5. ^ Michael L. Schoon, Do Parks Harm More than they Help? (PDF), Indiana University School of Public and Environmental Affairs & Workshop in Political Theory and Policy Analysis
  6. ^ http://www.pmandr.com/medical_practice_management/staffing%7Chr/how_to_protect_your_business_from_employee_theft.html[permanent dead link]
  7. ^ "Archived copy". Archived from the original on 2010-05-05. Retrieved 2010-04-21.CS1 maint: archived copy as title (link)
  8. ^ Stewart, Christopher S. (2006-01-28). "Risking Life and Limo". CNN.

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