A comparative analysis of business owner's perceptions of the creation of an enabling developmental environment in the Sedibeng Municipal region
Abstract
Local Economic Development (LED) is a concept that is synonymous with the improvement of living standards for people in local communities. The development of a local region is mostly influenced by the way in which the government develops policy, which creates an enabling environment for both businesses and individuals. Organisations, local government, and the people of the community are the three major pillars that form part of the “LED triangle”. These parties are identified as the stakeholders working together in order to improve the coordination of future projects. An enabling environment, alternatively, focuses on the role of government in improving the delivery of services to local communities. The 12 factors aspects discussed in terms of this topic comprise the formation of partnerships, leadership, safety and security, agricultural improvement, human resource development, poverty alleviation, economic development, environmental and spatial plans, policies and structures, entrepreneurship development, infrastructure plans, as well as the improvement of transportation.
The aim of the National Development Plan (NDP) is to ensure that poverty and inequality will be reduced, and that employment will increase by at least 11 million by the year 2030. South Africa is currently facing numerous economic, social and political problems and obstacles. Various protests across the country have left citizens feeling distressed by the lack of service delivery from local government. Development is one aspect that South Africa needs to maintain economic, social and political stability. Local Economic Development (LED) and an enabling environment are two very important tools that should be used to determine the level of economic development within a specific geographical area.
A quantitative research design was used in this study by means of the survey method in a cross sectional approach. The respondents included 50 business owners in the Midvaal, 50 respondents in the Lesedi, and 100 business owners in the Emfuleni areas. This was as a result of the non-probability sampling method that was used. The data in this study were analysed using SPSS version 22 (Statistical Package for Social Sciences). The questionnaire distributed to the business owners included four aspects: demographic information, public service perceptions, municipal practices, as well the factors contributing to the creation of an enabling environment, which was rated on a five-point likert scale.
Economic development and the improvement in the development of the standards of living will always have a positive influence on the enabling environment. From the empirical results obtained in the survey results it was found that the municipality with the best performances in service delivery as well as the highest number of factors contributing to the creation of an enabling environment will have a significant impact on the overall standards of living and development of the community. The statistics revealed that the Midvaal Local Municipality have the highest level of development in terms of standards of living and income inequalities, as such, the overall delivery of services and the enabling environment factors are significantly better than those of the Lesedi and Emfuleni Local Municipalities. The study concluded that if an enabling environment is created and provided it will have a significant impact on the overall economic development initiatives such as job creation initiatives and the alleviation of poverty. This study revealed the empirical findings of the study both in terms of primary and secondary data.