Geospatial analysis of census data for targeting new businesses using geoeconomics
Keywords:Analytics, ArcGIS, Asian, business, California, census, geospatial, restaurants, ZCTA
AbstractGeoeconomics plays a vital role in encouraging goods and services on newmarketplaces. Selecting a “sweet-spot” for new businesses is one of the biggest challenges fornew entrepreneurs, enterprises, and investors, especially in the restaurant industry. This paperaims to present a novel geospatial methodological approach for new businesses using censusdata to answer an important business question: Where I should start my new Asian cuisinerestaurant? State and zip code tabulation area (ZCTA) level data on race and income,downloaded from the US census website, were applied for the analysis. ArcGIS software wasused as a geospatial analytics tool for hotspot analysis and for producing maps. Based on thestate level standard deviation map, California was found to have the second-highest relativeAsian population as gauged by the standard deviation (Std. Dev.) from the mean (1.5-2.5 Std.Dev.), after Hawaii (>2.5 Std. Dev.), and followed by New Jersey, New York, Nevada, andWashington. The state of California was selected for further investigation. Seventeen of 58counties were found to be Asian community hotspots in California. A majority (48%, 854 of 1763)of the ZCTA were found to be Asian community hotspots in these zip codes in this state, andthis was statistically significant. Only 9% (163 of 1763) of the ZCTA were not statisticallysignificant Asian community hotspots, while 43% of the ZCTA were found to be statisticallysignificant coldspots of Asian communities in California. Among the 17 hotspot counties of Asiancommunities, 14 were also derived as hotspots of mean income. The road layer map revealedthat these ZCTAs are well connected to major roads in the state. New entrepreneurs,enterprises, and investors, those who are willing to open and or invest in new restaurants, butare not sure about the location, could target hotspot ZCTAs in these counties for Asian cuisine.Integrating ArcGIS with census data for producing maps of statistically significant potentialbusiness locations could be used as an important decision-making tool for opening newbusinesses.
Alayev, E. (1983). "Sotsial'no-ekonomicheskaya
slovar'." M. Mysl.
Anokhin, A. and S. Lachininskii (2015).
"Evolution of the ideas and contents of
geoeconomic studies." Regional Research of
Russia 5(1): 90-95.
Austin, S. B., S. J. Melly, B. N. Sanchez, A. Patel,
S. Buka and S. L. Gortmaker (2005).
"Clustering of fast-food restaurants around
schools: a novel application of spatial statistics
to the study of food environments." American
Journal of Public Health 95(9): 1575-1581.
Bhat, C. R., R. Paleti and P. Singh (2014). "A
spatial multivariate count model for firm
location decisions." Journal of Regional
Science 54(3): 462-502.
Boulos, M. N. K., T. Viangteeravat, M. N.
Anyanwu, V. R. Nagisetty and E. Kuscu
(2011). "Web GIS in practice IX: a
demonstration of geospatial visual analytics
using Microsoft Live Labs Pivot technology
and WHO mortality data." International
Journal of Health Geographics 10(1): 1.
Capps, R. (2007). "The characteristics of
unauthorized immigrants in California, Los
Angeles County, and the United States."
Conklin, J. N., M. Diop and M. Qiu (2016). "The
Importance of Location in the Financing of
Property Acquisitions by REITs." Available at
Demiriz, A. and B. Ekizoğlu (2015). Using
location aware business rules for preventing
retail banking frauds. Anti-Cybercrime
(ICACC), 2015 First International Conference
Dubé, J., C. Brunelle and D. Legros (2016).
"Location Theories and Business Location
Decision: A Micro-Spatial Investigation in
Canada." The Review of Regional Studies
ESRI (2012). ArcGIS for Desktop 10.1. USA,
Environmental Systems Research Institute.
ESRI (2014). ArcGIS 10.3 for Desktop,
Environmental Systems Research Institute
Redlands, CA USA.
Figure 4 Hotspot and coldspot map of the Asian population overlaid with a road layer in the Zip Code Tabulation Areas of
California, United States.
ESRI. (2015). "ArcMap: Classifying Numerical
Fields for Graduated Symbology." Retrieved
September 03, 2015, 2016, from
ESRI. (2016). "ArcGISPro: Data Classification
Methods." Retrieved September 03, 2016,
, from http://pro.arcgis.com/en/proapp/
ESRI. (2016). "ArcMap: Hot Spot Analysis (Getis-
Ord Gi*)." Retrieved September 03, 2016,
Gay, B. (2012). "Competitive Intelligence and
Complex Systems." Journal of Intelligence
Studies in Business 2(2).
Jordan, D. (2015). "Location and business-level
product innovation in Vietnam: Regional
differences and drivers." Australasian Journal
of Regional Studies 21(2): 232.
Karadeniz, M. (2009). "The importance of retail
site selection in marketing management and
hypothetical approaches used in site
selection." Deniz Bilimleri ve Mühendisliği
Kimelberg, S. M. and E. Williams (2013).
"Evaluating the importance of business
location factors: The influence of facility type."
Growth and Change 44(1): 92-117.
Lachininskii, S. (2013). "Experience on the
typology of geoeconomic risks." Geography and
Natural Resources 34(2): 111-117.
Mishra, S., S. P. Mohanty, S. K. Pradhan and R.
Hota (2015). "Importance of Location
Classification using Rough Set Approach for
the Development of Business Establishment."
International Journal of Computer
Murillo, L. (2010). "Elements food group
North, D. C. (1955). "Location theory and regional
economic growth." The Journal of Political
Porter, M. (2003). "The economic performance of
regions." Regional studies 37(6-7): 549-578.
Prato, T., Y. Wang, T. Haithcoat, C. Barnett and
C. Fulcher (1995). "Converting hydric
cropland to wetland in Missouri: a
geoeconomic analysis." Journal of soil and
water conservation 50(1): 101-106.
Renner, G. T. (1942). Human Geography in the
Air Age (a Text for High School Students),
Rey, S. J., L. Anselin, X. Li, R. Pahle, J. Laura,
W. Li and J. Koschinsky (2015). "Open
geospatial analytics with PySAL." ISPRS
International Journal of Geo-Information 4(2):
Singh, S. K. (2015). Assessing and mapping
vulnerability and risk perceptions to
groundwater arsenic contamination: Towards
developing sustainable arsenic mitigation
models (Order No. 3701365). Available from
ProQuest Dissertations & Theses Full Text.
(1681668682). Ph.D. Dissertation/Thesis,
Montclair State University.
Singh, S. K., S. A. Brachfeld and R. W. Taylor
(2016). Evaluating hydrogeological and
topographic controls on groundwater arsenic
contamination in the mid-Gangetic Plain in
India: Towards Developing Sustainable
Arsenic Mitigation Models. Emerging Issues
in Groundwater Resources, Advances in
Water Security. A. Fares. Switzerland,
Springer International Publishing.
Singh, S. K. and N. Vedwan (2015). "Mapping
Composite Vulnerability to Groundwater
Arsenic Contamination: An Analytical
Framework and a Case Study in India."
Natural Hazards 75(2): 1883-1908.
Søilen, K. S. (2012). Geoeconomics, Bookboon.
Supak, S., G. Brothers, D. Bohnenstiehl and H.
Devine (2015). "Geospatial analytics for
federally managed tourism destinations and
their demand markets." Journal of
Destination Marketing & Management 4(3):
UC-Census. (2014). "Geography: TIGER/Line®
Shapefiles and TIGER/Line® Files: Roads."
Retrieved September 03, 2016, 2016, from
US-Census. (2015). "Geography: TIGER/Line®
Shapefiles and TIGER/Line® Files."
Retrieved September 03, 2015, 2015, from
US-Census. (2016). "American Fact Finder:
American Community Survey." Retrieved
September 03, 2016, 2016, from
US-Census. (2016). "Geography: Cartographic
Boundary Shapefiles - ZIP Code Tabulation
Areas (ZCTAs)." Retrieved September 03,
, 2016, from
US-Census. (2016). "Geography: ZIP Code
Tabulation Areas (ZCTAs)." Retrieved
September 03, 2016, 2016, from
LicenseAuthors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).