Featured Research

from universities, journals, and other organizations

Secret To Small Business Success: Location, Location, Location And Physics

Date:
October 2, 2006
Source:
American Physical Society
Summary:
Choosing the right location is one of the most important and difficult decisions a business owner must make. You could rely on pavement-pounding research, intuition, and a good real estate agent, or you could turn to a new model that analyzes businesses in much the same way that physicists model interactions between spinning atoms.

Choosing the right location is one of the most important and difficult decisions a business owner must make. You could rely on pavement-pounding research, intuition, and a good real estate agent, or you could turn to a new model that analyzes businesses in much the same way that physicists model interactions between spinning atoms.

Pablo Jensen of the Ecole Normal Superiure in France studied the locations of businesses in Lyon to determine which stores seem to attract each other and which stores repel each other (much as atoms can attract or repel each other in various materials). The analysis leads to a quality index Q that automatically reveals promising store locations throughout the city. Q might be high for a jewelery store in a particular location if there are other accessory stores nearby selling shoes or hats, but few neighboring grocery or hardware stores.

Jensen confirmed his model by looking at business data for Lyon in 2003 and 2005. He found that bakeries, for example, that were located in low quality locations in 2003 tended to fail by 2005. Meanwhile, new bakeries popped up preferentially at locations where their Q index is high.

Jensen is currently working with the Lyon Chamber of Commerce to use his model's predictions of Q to help aspiring business owners find promising locations, as well as advising city officials on ways to improve Lyon's commercial opportunities.


Story Source:

The above story is based on materials provided by American Physical Society. Note: Materials may be edited for content and length.


Cite This Page:

American Physical Society. "Secret To Small Business Success: Location, Location, Location And Physics." ScienceDaily. ScienceDaily, 2 October 2006. <www.sciencedaily.com/releases/2006/09/060930094652.htm>.
American Physical Society. (2006, October 2). Secret To Small Business Success: Location, Location, Location And Physics. ScienceDaily. Retrieved September 30, 2014 from www.sciencedaily.com/releases/2006/09/060930094652.htm
American Physical Society. "Secret To Small Business Success: Location, Location, Location And Physics." ScienceDaily. www.sciencedaily.com/releases/2006/09/060930094652.htm (accessed September 30, 2014).

Share This



More Science News

Tuesday, September 30, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Earth Has Lost Half Its Vertebrate Wildlife Since 1970: WWF

Earth Has Lost Half Its Vertebrate Wildlife Since 1970: WWF

Newsy (Sep. 30, 2014) A new study published by the World Wide Fund for Nature found that more than half of the world's wildlife population has declined since 1970. Video provided by Newsy
Powered by NewsLook.com
Seismic Activity Halts Recovery at Japan Volcano

Seismic Activity Halts Recovery at Japan Volcano

AP (Sep. 30, 2014) Rescuers were forced to suspend plans to recover at least two dozen bodies from near the summit of Mount Ontake in central Japan on Tuesday after increased seismic activity raised concern about the possibility of another eruption. (Sept. 30) Video provided by AP
Powered by NewsLook.com
Argentina's Tax Evaders Detected, Hunted Down by Drones

Argentina's Tax Evaders Detected, Hunted Down by Drones

AFP (Sep. 30, 2014) Argentina doesn't only have Lionel Messi the footballer, it has now also acquired "Mesi" the drone system which monitors undeclared mansions, swimming pools and soy fields to curb tax evasion in the country. Duration: 01:18 Video provided by AFP
Powered by NewsLook.com
Dolphins Might Use Earth's Magnetic Field As A GPS

Dolphins Might Use Earth's Magnetic Field As A GPS

Newsy (Sep. 30, 2014) A study released Monday suggests dolphins might be able to sense the Earth's magnetic field and possibly use it as a means of navigation. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins