Ease of Doing Business in Local Government: Push and Pull Factors for Business Investment in Selected South African Municipalities

Gerrit van der Waldt and David Fourie
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Gerrit van der Waldt: Faculty of Humanities, North-West University, Potchefstroom 2531, South Africa
David Fourie: School of Public Management and Administration, Faculty of Economic and Management Sciences, University of Pretoria, Pretoria 0002, South Africa

World, 2022, vol. 3, issue 3, 1-17

Abstract: Ease of doing business with municipalities and within municipal areas refers to the simplicity, effortlessness, and extent to which private enterprises can establish and conduct their business. It is influenced by multiple factors such as the conduciveness of the statutory and regulatory framework and the effectiveness of municipal structures and processes, in order to reduce bureaucratic red tape for the simplification of administrative processes such as the registration of business property, the issuing of permits, and access to electricity. Municipalities thus play a significant role in attracting and retaining business investment by establishing a conducive climate for business growth and local economic development. The aim of this article was to analyze the findings of a survey that was conducted to pinpoint business investment pull and push factors in selected municipalities in South Africa. By means of semi-structured interviews, a survey was undertaken with seven target groups. The obtained data were then triangulated with a desktop analysis of sampled businesses (i.e., case studies) that had relocated, mainly due to municipal service delivery failures. The survey revealed the underlying factors that lead to ease of doing business weaknesses, uncovered winning strategies to attract business investment, and proposed measures to enhance municipal business retention praxis.

Keywords: ease of doing business; South Africa; municipalities; entrepreneurship; business development; local investment; economic development (search for similar items in EconPapers)
JEL-codes: G15 G17 G18 L21 L22 L25 L26 Q42 Q43 Q47 Q48 R51 R52 R58 (search for similar items in EconPapers)
Date: 2022
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