There is little wonder why local SMEs feel their city governments are insensitive to business sector needs. Provincial government also has a role to play in how local government treats its business sector, because it defines the municipal policy framework. If provincial policies encourage local governments to use inappropriate measures on the business class, then responsibility for correcting the problems must be shared. Conclusions and Recommendations Local governments are no doubt concerned about economic growth and new job creation. There is little evidence, however, that they are seriously looking at their governments' own practices.
Local governments have little direct influence over economic development in their regions.
Government kick-start programs do not build economies. Individuals and businesses, who take the risk to invest in their products or services, build economies, hire the people necessary to get the job done and persevere through highly competitive markets. No government can reproduce, on a sustainable basis, the complex workings of the marketplace. Local governments, nonetheless, have plenty of indirect influence over businesses and economic development. The more hurdles that a business has to overcome, the less likely they will even attempt to grow.