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EMAC 2022 Annual

Small businesses and neighbourhood satisfaction

Published: May 24, 2022


Ágnes Somosi, -; Luk Warlop, BI Norwegian Business School; Alfred Stiassny, Vienna University of Economics and Business; Krisztina Kolos, Corvinus University of Budapest


This paper asks whether housing satisfaction, neighbourhood and commercial interaction have an impact on neighbourhood satisfaction. Quantitative analyses of a survey of 393 residents was conducted to measure neighbourhood satisfaction. Linear regression results indicate that neighbourhood satisfaction is significantly predicted by neighbourhood interaction and commercial interaction in low traffic areas, whereas housing satisfaction does not have such effect. Neighbourhood characteristics such as parts of the area within the city (downtown and suburb) were found to differentiate between the effects of small businesses in the service sector and neighbourhood satisfaction indicating that services have a greater role altogether in determining satisfaction levels in downtown areas. The findings suggest that both neighbourhood interaction and commercial interaction affect neighbourhood satisfaction in low traffic areas, indicating a stronger, personal contact with small businesses that highlights the role of service sectors in neighborhoods.