Enterprise friendly index

Where to invest and which areas to avoid

For businesses to grow and create job opportunities an enterprise friendly environment is required. EOSA is now developing an Enterprise Friendly Index for South Africa to rank Local Municipal areas (apart from the large metro areas of Gauteng, the Western Cape, KZN and the Eastern Cape) in accordance with indicators measuring how friendly the environment is for businesses.

Enterprise friendly policies as well as low policy volatility are of extreme importance. In the current situation, enterprises suffer from lack of both of these. However, good or bad policies and policy uncertainty impact nationally and on all businesses.

EOSA, after consultation with a range of business managers, entrepreneurs and financiers, decided to measure sub-national environments against indicators that can be assessed and addressed at local level by:

  • assessing the average incidence of Crimes against Business per formal enterprise in a municipal area;
  • assessing the Enterprise investment per municipal area; and
  • determining how accessible and efficient the municipality is (answering phones, paying service providers and issuing rates clearance certificates.

Below is an extract of how Nine Municipalities in the Free State shaped regarding efficiency and accessibility.

Municipal efficiency

Merging the rankings in the three categories (Crimes against Business / Enterprise Investment & Municipal Accessibility and Efficiency), the municipal areas can be ranked according to how enterprise friendly these environments are.

Prospective investors and financiers will thus be able to assess which areas are good for investment and which areas to avoid.

The metros are not automatically the best places for business.  For more information, send an email to: johannes@failsafe.co.za  

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Is Dihlabeng a good investment area? The metros are not automatically the best places for business…


Local businesses do not need to wait for S&P or Fitch to restore SA’s investment grading. There are localities that still are enterprise friendly. In the Free State Province the municipal area of Dihlabeng (Bethlehem, Clarens, Fouriesburg & Paul Roux) ranks as the most enterprise friendly area.  Click here to learn more…