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Tax Considerations:

Municipal rates and taxes will be key business location decision factors. However, the synchronisation of international taxes has ensured that tax is largely a neutral factor in location decision-making. (Glen, 2008:40)

Industrial Environment:

For innovative firms facing a market uncertainty, it is beneficial to choose location around other firms, predominantly because of the benefits of information spillovers. Over time the interaction among many firms in a particular location will lead to the development of specific knowledge which will be unique to that location. Another contributing factor of the existence of such a system will enable firms to avoid the high cost of creating it. (Kuncoro, 2000:6)

A Skilled and Flexible Labour Force:

From a competitive point of view any emerging economy requires a workforce that is infinitely more skilled than that required a few decades ago. Hence, the completion of secondary Education has become the norm to enable a workforce to work with advanced technologies and continually improve key processes. “The modern economy also requires flexibility in the workforce to ensure sustainability in a highly competitive environment (Glen, 2008:40).”

The Department of Education (2003:5) found that “values and morality give meaning to our individual and social relationships. They are the common currencies that help make life more meaningful than might otherwise have been. An education system does not exist to simply serve a market, important as that may be for economic growth and material prosperity. Its primary purpose must be to enrich the individual and, by extension, the broader society”.

The Regulatory Environment:

In determining the competitiveness of a business location, another important factor is how transparent business rules in that region are and whether they are enforced in a reasonable manner. However, government at all levels has to be aware that undue levels of red tape inhibit the competitiveness of firms. The increasing importance of environmental regulation is also impacting on the amount of compliance that firms have to achieve and adds to the overall cost of doing business. (Glen, 2008:40)

Measuring Quality of Life

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