Affirmative purchasing : factors affecting small, medium and micro enterprise (SMMES) in the tender/procurement process

Abstract :

Investigates the problems affecting the historically disadvantaged SMMEs in the procurement/tendering process in the North West Province, in particular Mabopane, Ga-Rankuwa and Winterveldt. The first part of the study is the literature study, the background of SMMEs in South Africa and their role and importance in the economy. Affirmative purchasing and minority business development as well as methods of establishing affirmative purchasing are also discussed. The second part is the empirical study. It has been conducted by means of data collection from 67 SMMEs. The study shows that males dominate the majority of the SMMEs and most of the respondents have post-matric qualifications. Their businesses are mostly legally operated and registered for tax purposes. Their turnovers are in the excess of R250 000 per annum. The study shows that there are no relationships between the biographical variables: type of business; turnover of business; and assets of business with factors limiting SMMEs in the procurement tender process. The study reveals that the major factors affecting SMMEs (especially the historically disadvantaged SMMEs) in the tender procurement process are financial, tender criteria, competition and communication. The financial guarantees are cumbersome and the tender preparation costs as well as the profit margins discourage SMMEs from tendering. SMMEs perceive the tender criteria and product or service specification as being unclear and inadequate. With regard to competition, there is a perception that some companies have inside information, tenders are developed around certain companies and there is too much competition in the tender process. The businesses have difficulties in obtaining tender information and documents. Although the majority have received the tender bulletin, they believe that information should be simplified to enable them to tender. It is however, clear from this study that most of the SMMEs surveyed do not doubt their own capabilities. This is due to the fact that most of them have been trained in the tender process, so they do not have problems with the terminology used and in preparing the tender documents.



Author Petje TSC
Date Accessioned 2016-09-26T06:23:44Z
Date Available 2016-09-26T06:23:44Z
Date Created
Identifier URL 1999
Language English
Subject Business administration / Business leadership
Subject 2 Business administration / Business leadership
Alternative Title
Degree Type Masters degree
Degree Description  MCom