SECTION A [60 MARKS] Answer ALL the questions in this section. The relationship between the creation of an enabling environment and economic development: A comparative analysis of management at local government sphere It is the responsibility of any government to provide basic services to its businesses and citizens and these services should be provided at a high level of effectiveness, responsiveness, and efficiency through good management (Johnson, 2004). Good effective service delivery also increases the attractiveness of a city (Hagyari et al., 2016). Globally, the majority of governments are faced with challenges in service delivery and management. South Africa is no exception to this (Mpehle, 2012). Manning (2006) also mentions that poor service delivery is not unique to the South African local government environment but is a global phenomenon. The geographical focus of the study is on the Vaal-Triangle region, which forms the southern part of the Gauteng province, South Africa. The focus is on two local municipalities in the region namely Midvaal Local Municipality and Emfuleni Local Municipality. The two municipal areas will be compared regarding perceptions of local businesses on the effectiveness of the creation of an enabling environment and service delivery. The Midvaal Local Municipality is one of the top-performing municipalities in the province. According to De Freitas (2013), Midvaal Municipality moved up 10 places in the annual Municipal Productivity Index in 2013, which places it within the top 5 percent of all municipalities in South Africa. Furthermore, the municipality has performed better than the other municipalities in the region such as Emfuleni Local Municipality in terms of job creation and skills development (De Freitas, 2013). Efficient delivery of basic services and management thereof is important for any local region to grow and prosper (Rhodes, 1996). Poor service delivery and management could restrict the creation of an enabling environment, contributing to high levels of poverty, inequality, and unemployment. Source: Link As the Local Economic Development Practitioner at Midvaal Local Municipality, you have been given the task of writing a report that will focus on creating an enabling environment for small businesses. In your report discuss the following points below.

Question 1 (60 Marks)

1.1 Investigate the relationship between the Midvaal Local Municipality Local Economic Development department and small enterprises as the municipality attempts to create an enabling economic environment. (10 marks)

1.2 By exploring the macroenvironment, discuss how you would advise the small business owners to tackle the challenges that come from such an environment where there are cultural, political, legal, economic, social, and technological environmental issues that affect the growth of small businesses in Midvaal Local Municipality. Your responses should emphasize some of the ways that businesses might mitigate the effects of the macroenvironment. (20 marks)

1.3 Before opening its doors, every business is required to conduct an environmental scanning exercise. Conduct an environmental scanning exercise with your local municipality's small business owners during a training session. Explain how each technique will assist small businesses to get a competitive advantage and grow their businesses. (20 marks) 1.4 One of your responsibilities is to have excellent communication skills in order to manage the relationships you've built with local small businesses. How would you utilise informal communication channels to stay in touch with your Midvaal Local Municipality small businesses?