The relevance of municipal spatial development frameworks in business site selection decisions.

Abstract

Due to the current state of the global economy, it is critical for businesses to ensure that they are able to capitalise on every action they take and ensure they are competitive. Hence with every action there is a consequence, so one of the most important decisions taken by a business is that of location. This decision has a lasting effect as it determine the success or failure of a business and businesses will have to live with the consequences of their decisions long after the decision is made. This study examined the factors that influence business location. In considering these factors it further explored whether businesses that make use of the municipal spatial development framework (SDF) benefit from it since it is meant to be used by both government and the public in directing and guiding development (mainly in space), it is the spatial vision of the municipality. The municipal spatial development framework can be useful tool used to avoid duplication of efforts as it provides information which the public can duplicate if not consulted. In determining the use of the SDF to inform business location it was important to determine the interaction between business and the municipality with regard to the municipal plans and developments. The study adopted a qualitative approach, which made use of convenience sampling in recruiting participants to the study and six respondents were obtained and interviewed. The participants in this study consisted of those who held management positions as they are involved in strategic decision making within companies. The study found that the SDF is relevant in informing business location decision; however it is not widely used by businesses because most of them do not have any knowledge of it, and have no interaction with the municipality. Based on the findings of the study it was recommended that municipalities communicate their plans and developments (IDP/SDF) with businesses, businesses are also encouraged to interact with municipalities with regards to their plans and developments. Businesses are to also make use of the SDF when considering location/ relocation of their business, they should interrogate the SDF in determine what the SDF communicate with regard to the factor that affect their business location.