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The Nature, Extent and Locational Dynamics of Tygervalley Businesses in the Cape Town Economic Inequality Context

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The Nature, Extent and Locational Dynamics of Tygervalley Businesses in the Cape Town Economic Inequality Context THE NATURE, EXTENT AND LOCATIONAL DYNAMICS OF TYGERVALLEY BUSINESSES IN THE CAPE TOWN ECONOMIC INEQUALITY CONTEXT by MONIQUE HELENA DAMONS Thesis presented in fulfilment of the requirements for the degree Master of Arts in the Faculty of Arts and Social Sciences at Stellenbosch University Supervisor: Dr M Spocter March 2017 Stellenbosch University https://scholar.sun.ac.za DECLARATION By submitting this thesis electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the sole author thereof (save to the extent explicitly stated otherwise), that reproduction and publication thereof by Stellenbosch University will not infringe on any third party rights and that I have not previously in its entirety or in part submitted it for obtaining any qualification. Date: March 2017 Copyright © 2017 Stellenbosch University All rights reserved i Stellenbosch University https://scholar.sun.ac.za ABSTRACT Inequality is a persistent problem in post-apartheid South Africa. This study responds to the inequity in South Africa’s current pattern of spatial development and spatial trajectory, specifically the lack of spatial economic transformation in its cities. It aims to provide a deeper spatial understanding of economic inequality in Cape Town, specifically the continued lack of investment and economic growth in poor city areas compared to continued investment and growth in wealthy areas. The study provides insight into economic activity in Tygervalley, a wealthy business precinct in the northern suburbs of Cape Town, through a detailed analysis of the location of private investment and business. Businesses in Tygervalley were identified and their features and locational decisions determined and analysed. Conditions conducive to business growth in the northern suburbs, the level and types of business activity the area, as well as barriers to business growth in the south-east of Cape Town were determined based on these findings. Quantitative and qualitative data were collected from businesses in Tygervalley and analysed using multivariate and thematic approaches respectively. The study had an embedded mixed methods design with positivistic, phenomenological and pragmatic philosophical underpinnings. Findings could inform policies to address the city’s uneven growth pattern and encourage job creation in south-eastern Cape Town. The results show that wealthy areas such as Tygervalley continue to reflect the characteristics that promote economic growth while poor areas such as south-eastern Cape Town do not. Since initial assessments 15 years ago, little has changed in altering barriers to development in poor areas of the city. Policies and initiatives operating during this period have failed to create a spatially more equitable city by creating conditions conducive to business growth in poor areas. Cape Town is continuing on a general inequitable economic trajectory with economic growth proliferating and being reinforced in northern wealthy areas with comparatively little growth in poor areas such as the south-east. This trend does not support urban integration to the economic benefit of poorer areas in Cape Town. There is still a great need for improved proactive (particularly local) governance directing investment to poor areas through public-private-civil partnership mechanisms. KEYWORDS and -PHRASES: economic inequality, spatial development, Cape Town, business location, government ii Stellenbosch University https://scholar.sun.ac.za OPSOMMING Ongelykheid is ’n hardnekkige probleem in Suid-Afrika ná apartheid. Hierdie studie is in reaksie tot die ongelykheid in Suid-Afrika se huidige patroon van ruimtelike ontwikkeling en ruimtelike koerse, veral die tekort aan ruimtelike transformasie in sy stede. Dit poog om ’n dieper ruimtelike begrip van ekonomiese ongelykheid in Kaapstad, spesifiek die volgehoue tekort aan investering en ekonomiese groei in armer gedeeltes van die stad in vergelyking met die volgehoue investering en ekonomiese groei in die welgestelde gebiede, te bied. Hierdie studie verskaf insig tot die ekonomiese aktiwiteit in Tygervallei, ’n gegoede sakewyk in die noordelike voorstede van Kaapstad, deur middel van ’n gedetailleerde analise van die ligging van private investering en besighede. Besighede in Tygervallei is geïdentifiseer en is hul kenmerke en liggingsbesluite vasgestel en geanaliseer. Gunstige toestande vir die uitbreiding van besighede in die noordelike voorstede, die vlak en tipe besigheidsaktiwiteite in die gebied, sowel as die hindernisse wat sakegroei in die suidoostelike gebiede van Kaapstad inperk, is volgens hierdie bevindinge vasgestel. Kwantitatiewe en kwalitatiewe data is van besighede in Tygervallei verkry en is geanaliseer deur onderskeidelik van veelvoudige en tematiese benaderings gebruik te maak. Die studie het ’n geankerde ontwerp met gemengde metodes gehad met positivistiese, fenomenologiese en pragmatiese filosofiese onderstutting. Die bevindinge (van hierdie studie) kan gebruik word om beleide te skep wat die ongelyke groeipatroon van die stad kan aanspreek en die skepping van werksgeleenthede in die suidoostelike gedeeltes van Kaapstad aanmoedig. Die resultate dui aan dat gegoede gebiede soos Tygervallei steeds die eienskappe wat ekonomiese groei bevorder, reflekteer terwyl dit nie in arm areas soos die suidoostelike gebiede van Kaapstad, voorkom nie. Sedert die aanvanklike waardebepaling 15 jaar gelede gedoen was, het daar nie veel verander om die hindernisse, wat in die weg van ontwikkeling in armer gedeeltes van die stad staan, uit die weg te ruim nie. Beleide en inisiatiewe wat in hierdie tydperk van toepassing was, het nie daarin geslaag om ’n stad te skep wat ruimtelik meer gelyk is deur gunstige toestande vir sakegroei in armer gebiede te skep nie. Kaapstad is op ’n algemene ongelyke ekonomiese koers waar in teenstelling met die min groei wat in die arm gebiede soos die suidoostelike gebiede plaasvind, ekonomiese groei in die noordelike gegoede gebiede floreer en bevorder word. Hierdie tendens ondersteun nie stedelike integrasie tot die ekonomiese voordeel van armer gebiede in Kaapstad nie, Daar bestaan steeds ’n groot behoefte vir proaktiewe staatsbestuur (veral plaaslik) om investering in arm gebiede deur middel van openbare-private-burgelike vennootskap meganismes te bestuur. iii Stellenbosch University https://scholar.sun.ac.za SLEUTELWOORDE en –FRASES: ekonomiese ongelykheid, ruimtelike ontwikkeling, Kaapstad, sakeligging, regering iv Stellenbosch University https://scholar.sun.ac.za ACKNOWLEDGEMENTS I would like to thank My parents, Cliffie and Edwina Damons, for their unwavering and continual support, interest, understanding, patience and belief in my strength and abilities. All my friends and colleagues for their continual interest, support, understanding and patience. My supervisor, Dr Manfred Spocter, for his continual and thorough technical guidance as well as understanding of all the personal obstacles and set-backs I faced during the research process. Thank you for helping me navigate engagements with academics and for always being available, even at short notice. Dr Pieter De Necker for his editing support. v Stellenbosch University https://scholar.sun.ac.za CONTENTS CHAPTER 1 INTRODUCTION AND CONTEXTUALISATION....................... 1 1.1 INTRODUCTION ............................................................................................................................ 1 1.2 THE RESEARCH PROBLEM ........................................................................................................ 3 1.3 THE RESEARCH PURPOSE ......................................................................................................... 5 1.4 RESEARCH AIMS AND OBJECTIVES ........................................................................................ 6 1.5 DEFINING THE STUDY AREAS .................................................................................................. 6 1.6 RESEARCH METHODOLOGY AND METHODS ......................................................................14 1.6.1 Research methodology ..............................................................................................................14 1.6.2 Philosophical underpinnings ....................................................................................................15 1.6.3 Research methods .....................................................................................................................16 1.6.3.1 Quantitative methods ...........................................................................................................17 1.6.3.2 Qualitative and other methods ..............................................................................................20 1.6.4 Data preparation and analysis .................................................................................................21 1.7 RESEARCH PROCESS AND THESIS STRUCTURE .................................................................21 1.7.1 The research process ................................................................................................................21 1.7.2 Thesis chapter structure ...........................................................................................................21 CHAPTER 2 THEORETICAL FRAMEWORK ................................................. 23 2.1 INTRODUCTION ...........................................................................................................................23
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