Knowledge-based service industry in a South African university town: The case of Stellenbosch

Figures & data

Figure 1: Distribution of Stellenbosch establishments across main business activity categories and Other Business Activities subcategories (n = 104)

Table 1: Length of time different branch types have been operational in Stellenbosch (n = 104)

Year of establishment	Single branch	National branch	National head office	International branch	International head office	Total
2007	1	1	0	0	0	2
2004–06	7	1	1	1	3	13
2000–03	15	7	4	1	2	28
1994–99	27	3	3	0	2	35
Before 1994	15	3	3	3	1	25
	65	15	11	5	8	104
Note: Bold figures are referred to in the discussion.

Table 2: Factors contributing to the successful performance of core business activities

Factor	Crucial to business's success	Important	Necessary	Beneficial but not necessary	Not important
A highly educated workforce	53%	36%	7%	2%	2%
Face-to-face client consultation	58%	25%	9%	5%	4%
Proximity to clients	16%	33%	13%	24%	15%
The latest information technology (IT)	39%	36%	13%	12%	0%
Research & development (R&D)	30%	24%	22%	17%	7%
Inter-firm networks	24%	27%	21%	15%	13%
Convenient transport infrastructure	12%	23%	26%	18%	20%
Proximity to competitors	6%	17%	4%	19%	55%

Table 3: Factors influencing business location

Overall ranking	Factors specific to Stellenbosch	Crucial	Beneficial	Not important
1	This is/was the owner/key role player's hometown	45%	40%	15%
2	Beautiful natural surroundings	15%	57%	28%
3	A better quality of life for employees	15%	54%	30%
4	The location attracts highly educated/specialist employees	16%	51%	32%
4	Good primary/secondary/tertiary education opportunities for employees’ children	19%	47%	34%
5	Closest location to the business's most important clients/customers	23%	34%	42%
6	Closest location to the majority of the business's clients	21%	38%	42%
6	Close to Cape Town	11%	58%	31%
7	A good location for finding highly skilled university graduates	19%	41%	40%
8	An excellent pool of highly educated specialists in your line of business	16%	43%	41%
8	Safer than other areas in terms of crime	13%	50%	37%
9	The business is situated close to useful business networks	8%	58%	34%
10	The business is situated at a prestigious address/office park	16%	40%	44%
11	A good mix of social and cultural amenities	10%	51%	39%
12	An attractive/suitable climate	10%	49%	41%
13	The business is situated close to tertiary institutions (excluding the university)	13%	39%	48%
14	A university town	12%	35%	53%
14	Close to convenient transport links	11%	36%	53%
15	Good public services	5%	32%	63%
16	The business is situated close to R&D institutions (e.g. CSIR)	8%	24%	68%
16	The business is situated close to similar firms in the same industry (competitors)	5%	30%	65%
17	Certain other financial benefits	6%	23%	71%
18	The business is situated close to useful government resources	1%	31%	68%
19	Rent benefits	1%	17%	82%
20	Tax benefits	1%	10%	89%

Table 4: Geographic distribution of client base per branch type

Business branch types	Average percentage of clients at different locations
	Stellenbosch	Surrounding small towns	Cape Town	Other provinces	Other countries
Single branches	41%	19%	16%	18%	6%
National branch	23%	36%	17%	18%	3%
National head office	12%	17%	17%	52%	3%
International branch	30%	24%	5%	1%	40%
International head office	8%	6%	9%	11%	65%