Journal of Economics and Behavioral Studies (ISSN: 2220-6140) Vol. 9, No. 6, pp. 57-66, December 2017 57 Formulation and validation of an Enabling Developmental Environment Scale (EDES) for local economic development (LED) Daniel Francois Meyer, Elsabé Keyser Faculty of Economics and Management Sciences, NWU, South Africa danie.meyer@nwu.ac.za, elsabe.keyser@nwu.ac.za Abstract: Local government is one of the main role players in local economic development (LED) and need to assist in the creation of an enabling developmental environment for local businesses to prosper. Partnerships are required between local government, businesses and communities for regions to develop, yet in many cases government at this level fails to create this developmental enabling environment. This research has as its focus on the formulation and validation of an Enabling Developmental Environment Scale (EDES). This scale will allow local government to be evaluated, assessed and compared regarding the creation of such a developmental environment. The pilot study involved152 participants from the Vaal Triangle region, South Africa. Reliability and construct validity of the instrument weretested by using the Cronbach’s Alpha Coefficient and Varimax Factor Analysis. It is evident from the results that thescale is a valid and reliable tool for researchers to evaluate and assess the level of an enabling environment as created by local government in a specific region. Keywords: Enabling environment, Local economic development, Enabling Developmental Environment Scale 1. Introduction One of the core functions of local government is to ensure that an enabling and developmental environment exists within a local region for business to prosper and for the region to achieve economic development (Mountford, 2009). One of the main functions of local government in South Africa since the first democratic elections in 1994 is Local Economic Development (LED) in partnership with other stakeholders including businesses and communities (Cohen, 2010). LED together with the function of creation of an enabling environment, was formally included in the Constitution in 1996 (South Africa, 1996). Since then, Section 152 of the Constitution, transformed the roles and functions of local governments to be more developmental and added the functions of social and economic development. The Education and Training Unit (ETU) (2012) states that a developmental local government speaks of a local government that maximizes social and economic growth, providing infrastructural services and creating liveable residential areas offering community facilities. After the democratic elections in 1994, and since 1996, local government in South Africa has struggled to implement this function of social and economic development for local communities that have the right to an enabling environment for such development, including the business community (Meyer, 2014). According to Nel and Rogerson (2005), South Africa’s post-apartheid development policy concentrates on developmental government with a focus on community development and the disadvantaged poor section of the population. Local government has been encouraged to intervene and play a leading role in job creation and the reduction of poverty. The main constraints in delivering results, however, are poor analysis and understanding of local economies, unsustainable community development projects, as well as the lack of capacity and resources. The Constitution is supported by the Public Administration Management Act of 2014 (South Africa, 2014), which instructs all levels of government to formulate and implement legislation, policy initiatives and other actions to achieve social and economic development. Also in support of the Constitution, the White Paper on Local Government (South Africa, 1998) lists a number of specific objectives for local government in LED. The White Paper preserved into statutory obligations of the Local Government known as the Municipal Systems Act 32 of 2000. Municipalities in South Africa must be development oriented, reliant on strategic and integrative planning to indicate a long-term vision of municipalities (Humby, 2015, p. 205). These actions include the coordination of social and economic development, resource redistribution, effective basic service delivery, minimization regulations, formulation and implementation of favourable local procurement policies, partnerships development and the creation of economically and socially resilient communities (South Africa,