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Cody Layton and Laura Ng HON 201 Urban Social Science Literature Review Draft In our attempt to discover the reason regarding business popularity on Northwest 23rd Avenue, in Portland, Oregon; knowledge of what makes a business location appealing and successful had to be grasped. The first step in this process was to collect information about what makes an ideal choice of business location. Our research is constructed of secondary resources, taken from peer reviewed articles and books, all in order to answer the question, what makes a prime business location? In article “ Finding the Right Business Location” written by Kevin Thompson, he provides basic guidelines on choosing the right location for any kind of business, as he states in his opening paragraph, “Choosing the right business location is one of the most important decisions a successful business can make” (1). Thompson builds his credibility with his many successful personal businesses. This success he claims derives primarily from having a better location in comparison to his competitors. He also believes the company’s markets, cost factors (land, construction, materials and labor), local ordinances and regulations, accessibility to transportation, space for future expansion, quality of local services and availability of labor, are essential factors in determining location. Among the citations Thompson provides in his article, we found, “Choosing Your Business Location” published by the U.S Small Business Administration (SBA). Although the SBA and Thompson both agree on the importance of business location, they have slightly different point of view. SBA believes the three most important business factors need to be presented as a question: Is the location consistent with the image you want to maintain? Are the businesses around you complementary or competing? And does the location have potential employees?

At this point in our research, the only valid data collected offered opinions from successful entrepreneurs and how they view the decision process behind business location. This data, however valid, only reveals a small sample of opinion. In the article “Evaluating the Importance of Business Location Factors: The Influence of Facility Type” written by Shelley Kimelberg examines two important issues concerning the evaluation of business location. Setting this article apart from the other articles that seek to determine a single factor or set of factors that influence site selection, this study aims to measure the relative importance of a wide range of factors. This is done through the use of primary data collected from a survey given to 231 real estate brokers, local business managers and urban planners asking them to rate 39 different factors in determining business location (scale was 1-4). The top five highest rated (based on average score) are as follows: on-site parking for employees, rental rates, availability of appropriate labor, timeliness of approvals/appeals and quality/capacity of infrastructure. The diversity associated with this sample size is why the results alter more from the data collected from Kevin Thompson and the SBA. According to the article “Breaking New Ground” written by Bridget McCrea, before pinpointing the store location, the retailers should study their target market and direct competitors. The locations need to have access to adequate supplies and inventory that can fully meet the consumers’ needs. Nearby public transportation sometimes can increase flexibility for the customers who don’t have a car (42). Our research has provided a plentiful amount of information regarding factors of ideal location. The next question to ask is, what benefit does location offer to business owners? Choice of location has significant impact for the future success of the business, since this is a long-term fixed investment. A good location can “attract large number of customers, and increase

the potential sales of the retail outlet” (1); however, the interior decoration and atmosphere need to be appropriate and connect the theme of the products (Ghosh at el.). Personal preferences sometimes is one of the elements may influence the location decisions. Many owners of retail businesses placing their businesses near their homes for conveniences; and also make it accessible to the customers (Weber 2). After deciding what products and services the business should carry, location to other surrounding businesses is also critical. For example, stores that carry shopping goods should not locate near stores that carry convenience goods. The article “Choosing the Retail Location” points out that locations at a corner of an intersection can increase the volume of traffic, but adequate parking is desired to increase demand (Jeffrey et al. 2). There are some differences for location of a restaurant than a convenience and specialty stores. According to the article “How to Find the Right Location,” the location of the restaurant needs to be accessible and visible for customers. The layout also needs to be comfortable for customers to order and dine in. The minimum potential count of people and their income level are build into factors when judging the site (Smith). The findings presented in this study offer many concepts to build on and apply to Northwest 23rd Avenue in Portland, Oregon. In order to decide on the ideal location to open a business, many factors need to be thought through. Our research shows that there is not one accepted list evaluating the importance of location factors. Primary research is now needed in our field of study. Communication with the business owners is our next step in this study. It is our goal to determine why the individual businesses are located on 23rd Avenue, rather than other areas of Portland. As our findings are revealed, we would like to compare them to the answers collected in our research presented here, in an attempt to see if our primary data reveals

similar answers for choosing location that were discovered during our research. After determining why owners chose to locate their businesses on Northwest 23rd, we would like to discover if this was a successful location for them. All in an attempt to understand why Northwest 23rd is such a popular destination for local businesses in Portland.

Bibliography Anderson, Arnold. "The Advantages of Opening a Store in a Busy Area." The Advantages of Opening a Store in a Busy Area (n.d.): 1-9. Chron. Web. 22 Oct. 2013.

Ghosh, Avijit and Sara L. McLafferty. Location Strategies for Retail and Service Firms. Maryland: Lexington Books, 1987. Print. Jeffrey P. Davidson, James R. Lowry, J. Ross McKeever, and Frank H. Spink. “Choosing a Retail Location.” U.S. Small Business Administration[Portland State University Library]. 19 Feb 1988. Print. 22 Oct 2013. Kimelberg, Shelley M. "Evaluating the Importance of Business Location Factors: The Influence of Facility Type." Growth and Change V44 N1 (n.d.): n. pag. (Article, 2013) [Portland State University]. Wiley Online Library. Mar. 2013. Web. 21 Oct. 2013.

McCrea, Bridget, and James Johnson. “Breaking New Ground.” Black Enterprise 35.8 (2005): 42. Academic Search Complete. EBSCOHost. Portland State University Library. Web. 23 Oct 2013 Smith, Sam. “How to find the right location.” Restaurant Business. Vol.112(May 2013): p.22. EBSCOHost. Portland State University Library. Web. 22 October 2012.

Thompson, Kevin D. "Finding the Right Business Location." Finding the Right Business Location. Vol. 23.8 (n.d.): 1-5. Web.ebscohost.com. Portland State University. Web. 18 Oct. 2013. . "Tips for Choosing Your Business Location | SBA.gov." Tips for Choosing Your Business Location | SBA.gov. U.S Small Business Administration, n.d. Web. 18 Oct. 2013.

Weber, Fred I. “Locating or Relocating Your Business.” U.S. Small Business Administration [Portland State University Library]. 15 Mar 1988. Print. 22 Oct 2013....