BUSINESS LOCATION DECISIONS

 Labour regulations  Environmental factors  Transport  Infrastructure and availability of electricity and water  Potential market (Consumers)  Raw materials  Labour markets  Climate  Government and local regulations and taxes  Competition  Crime

 Labour Relations Act(66 of 1995) – regulates communication and negotiation between employees and employer. Promotes economic development, social justice and labour peace.  Basic Conditions of Employment Act(77 of 1997) – improves working condition.  Employment Equity Act (55 of 1998)- affirmative action in areas of employment, training, promotion and pay RESULTS:  Increase in cost of labour  Ask more for products and services

 Brings raw materials, employees and consumers within reach of business

 Business will not be able to operate effectively and efficiently without proper infrastructure  Electricity expensive (High demand and scarcity)  Investigate ways in which electricity can be saved e.g. Solar geyser, energy saving globes, switch off computers at night

 Share similar characteristics  Location must attract potential consumers  Must be accessible

 Especially in manufacturing businesses  Iron = heavy and take a lot of space  Costly and time consuming to transport  Better if business is located close to source of supply especially if:  Transport costs are high  Raw materials are perishable (milk or veggies)

 People who are capable and available to work  Cost of labour

 Businesses in agriculture and tourism depend on climate

 Must comply with local and national laws  Taxes influences profits  Free trade zone : where taxes are eliminated and regulations reduced to attract new business and foreign investors

 Difficult to survive unless there is a huge and growing demand

 Harmful – consumers will be hesitant crime stricken areas  Burglars and theft will lead to financial losses  Strengthen security