The preferential procurement policy objective of granting SMMEs preference in the allocation of government contracts is to guarantee a level playing field by granting access to the market. Yet, it is unclear what the current position of SMMEs is in participating in preferential procurement. SMMEs face obstacles that arise from inadequate resources availability in participating in preferential procurement. The purpose of this research report is primarily to explore the perceptions of the owner/and manager of SMMEs regarding significant resources that are required to influence involvement and participation in preferential procurement. Furthermore, to also explore the impact of participation in preferential procurement on employment generation.This descriptive quantitative research looks at a sample of 100 SMMEs from Gauteng that have been involved in preferential procurement at least once within a period of three years to date of participation in this study.The self administered web-based questionnaire was used to investigate perception of SMMEs on significance of resources that influence involvement and participation in preferential procurement and how their participation impacted employment generation.The results of the study indicated that SMMEs perceive administrative and supply capacity resources as the most significant resources to participate successfully. It further provided evidence of positive impact participation has on SMMEs growth in relation to employment generation.In contrast, the findings suggest that information resource is the least significant resource required to participate in preferential procurement. Lastly the results suggested that micro enterprises place less significance on supply capacity resource. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

The policies of the previous dispensation created racial disparities in South Africa and resulted in a need for transformation of public procurement systems to enable historically disadvantaged individuals (HDIs) to access government procurement opportunities. The Preferential Procurement Policy (PP Policy) was adopted to regulate preferential procurement in government in order to accelerate the award of procurement opportunities to companies that are owned by HDIs. The purpose of the research was to investigate the benefits of preferential procurement to HDIs in the light of the perception that the PP Policy is not achieving its objectives. The qualitative methodology was used to collect and analyse the data using the case study design. The research revealed that, although the results of implementing the policy are still below the expected outcomes due to stringent legislative requirements and corruption, many emerging HDI-owned enterprises benefit from preferential procurement opportunities. The study further contends that the achievement of the intended objectives of PP Policy can be improved by reviewing the model of implementation of the policy, improving awareness and accountability of the key stakeholders and providing unconditional support for SMMEs.

Philosophiae Doctor - PhD / With the advent of democracy, the ANC government was faced with the problem of addressing abject poverty, persistent unemployment and rank economic inequality that beset black South Africans under apartheid. To address these problems in a structured and comprehensive fashion, the Broad-Based Black Economic Empowerment Act 53 of 2003 (BBBEE Act) was promulgated. Several economists believed that growth in the economy is the bedrock upon which black economic empowerment would provide the foundation to correct these economic problems. This study sought to interrogate black economic empowerment as a means to address economic inequality and unemployment. The method of analysis and critique employed in this study is based on theories that Marx formulated in Capital: A Critique of Political Economy. In particular, this study draws on Marx’s theories of fictitious capital, surplus value production and appropriation, and the creation of the industrial reserve army. The thesis uses the theory to examine two BEE cases namely the Sanlam and Sasol equity transactions. It also analyses the relationship between productive capital and fictitious capital through an examination of Lonmin plc and Shanduka Pty Ltd, with a focus on the use of labour power to produce surplus value. Finally, it looks briefly at Sanlam and Sankorp to understand the rise of the black middle class in South Africa. Ultimately, this study charts a Marxist path to explain why black economic empowerment is unable to address economic inequality and unemployment. At the centre of this study is the problematisation of the capitalist mode of production on which black economic empowerment rests. The central argument advanced is that the very capitalist structure upon which this growth strategy was based, in fact laid the foundation for the reproduction of these self-same phenomena.

This study sought to highlight the concept of Black Economic Empowerment (BEE) as it applies to South Africa. BEE as a new concept in South Africa is likely to be faced with a number of challenges. Of note is how a number of pieces of legislation were generated to help create an environment for the implementation of BEE policy. What was illuminated in the study is the fact that in spite of the many policies having been generated, there seems to be a lack of understanding in terms of how these policies should be implemented. Self-evident in this study is the perception embraced by a number of stakeholders with regard to the implementation of BEE through public-private partnership. The perceived differences of opinion are not only reflected among-policy makers from different political parties, but also within the wider spectrum of South African society and workers’ movements. Differing views in terms of the actual implementation of the policy became evident in this study. The differing views seem to be premised around what can be portrayed as the niche that the concept of BEE occupies in the society at large. At the centre of this debate is the recycling of beneficiaries of BEE, which is seen to be consistent and invariable and may be perceived to be defeating the purpose of BEE through PPP. A number of questions were raised in this regard, which provided justification for the researcher to put the past and the present practices in juxtaposition. The study found that procurement processes and procedures were central to the discussion of BEE through PPP. Against this backdrop, the supply chain management system played a dominant role. The introduction of policy frameworks such as Preferential Procurement Policy Framework Act, 2000; Public Financial Management Act, 1999; the Constitution, 1996 and the Broad Based Black Economic Empowerment Act, 2003 provide an enabling environment for BEE through PPP to be a reality. The dominant discourse on BEE has been whether it indeed achieves what it set out to achieve, i.e. poverty alleviation. It is interesting that this discourse as addressed in this study seems to place in perspective the difference between economic growth and economic development, which seemed to have not yielded similar outcomes. Against this backdrop, the effect of BEE has been placed under scrutiny, with reference to the generally accepted determiners of economic growth such as gross domestic product (GDP). The study further focused on the effect of BEE in the rural areas in the midst of the perceived levels of illiteracy. Though the effect of BEE on women and youth was looked at, this has not been done in isolation from the realities facing this sector, such as a lack of skills perceived to have stemmed from the past policies of institutionalised segregation. The researcher has however argued that perhaps a new empowerment strategy had to be found based on poverty alleviation for the poor irrespective of the colour of their skin, political affiliation or gender; namely an empowerment strategy that looks into the future. The good policies referred to earlier are likely to fall prey to rampant greed as referred to by former president, Mbeki (2006). It appears the new measures will have to be put in place to curb the scourge of greed currently experienced, often masqueraded under affirmative action, affirmative acquisition or even affirmative discrimination and discrimination against the poor. This indeed feeds into the re-emergence of a new class struggle and sows the destructive seeds of interracial conflict and disharmony. / Thesis (PhD)--University of Pretoria, 2013. / School of Public Management and Administration (SPMA) / unrestricted

The objectives of this study were to evaluate the viability and sustainability of preferential procurement in the metals and engineering sector. Preferential procurement is one of the seven elements of Broad–Based–Black Economic Empowerment (BBBEE) and seeks to encourage companies to procure goods and services from black empowered suppliers. The Broad–Based–Black Economic Empowerment Act was legislated in 2004 as an improvement on the previous Black Economic Empowerment (BEE). The objective of these legislations was to increase participation of previously disadvantaged groups in the mainstream economy. BEE was deemed to be narrow because it focused exclusively on ownership and management control. BBBEE was enacted to broaden the number of beneficiaries and included five other elements, namely: Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Socio–economic Development. The two companies that engage in preferential procurement should benefit from the relationship and value should be created in the process. Companies should not procure from black suppliers for accumulating points on the generic scorecard. Black–owned suppliers should provide service and products of the highest quality standards that meet customer requirements. The questionnaire that reflects on the objectives of this study was drafted and circulated to black–owned suppliers for completion. The suppliers were asked to comment on statements that reflect on capacity, profitability, working relationship and continuity. The results show that the SMMEs have capacity to perform according to specification of customers. The area of concern was the difficulty for SMMEs to maintain the current preferential status. This is a risk that needs urgent attention. This needs further in–depth study and analysis. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011.

The objectives of this study were to evaluate the viability and sustainability of preferential procurement in the metals and engineering sector. Preferential procurement is one of the seven elements of Broad–Based–Black Economic Empowerment (BBBEE) and seeks to encourage companies to procure goods and services from black empowered suppliers. The Broad–Based–Black Economic Empowerment Act was legislated in 2004 as an improvement on the previous Black Economic Empowerment (BEE). The objective of these legislations was to increase participation of previously disadvantaged groups in the mainstream economy. BEE was deemed to be narrow because it focused exclusively on ownership and management control. BBBEE was enacted to broaden the number of beneficiaries and included five other elements, namely: Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Socio–economic Development. The two companies that engage in preferential procurement should benefit from the relationship and value should be created in the process. Companies should not procure from black suppliers for accumulating points on the generic scorecard. Black–owned suppliers should provide service and products of the highest quality standards that meet customer requirements. The questionnaire that reflects on the objectives of this study was drafted and circulated to black–owned suppliers for completion. The suppliers were asked to comment on statements that reflect on capacity, profitability, working relationship and continuity. The results show that the SMMEs have capacity to perform according to specification of customers. The area of concern was the difficulty for SMMEs to maintain the current preferential status. This is a risk that needs urgent attention. This needs further in–depth study and analysis. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011.

No description available.

The introduction of PPPs in infrastructure provision has changed the way in which governments around the world now view infrastructure provision. However, the introduction of PPPs to deliver the needed infrastructure has benefited only a few companies. Most of these companies are the big construction firms that possess technological know-how and those that have the financial ability to execute large infrastructure projects. Although SMEs are important for employment creation, inequality and poverty reduction, the participation of SMEs in these PPP projects is very low. This is because PPP models in developing countries are based on those used in developed economies, and such models ignore the socio-economic problems facing developing countries. Therefore, this study argues that PPP projects in developing countries present an opportunity for growing the SME sectors in developing countries. It challenges the viewpoint of seeing infrastructure backlogs only as providing opportunities to big private sector companies and argues that infrastructure backlogs can be used by governments to reduce the triple challenges of unemployment, poverty and inequality by linking SMEs to PPP projects. The traditional PPP model that is being applied by many developing countries does not fully encourage the participation of SMEs in PPP projects, as most of the projects executed through this model are bundled into big projects that SMEs cannot execute due to a lack of technological know-how and weak balance sheets. The study therefore suggests different ways in which the participation of SMEs in PPP projects could be improved based on the results of the survey conducted for this study. The study then proposes an “innovative conceptual PPP model for sustainable SME development” that takes into account the needs for developing countries to create jobs, reduce poverty and inequality. It also takes into account all challenges for SMEs identified through the review of literature and the study survey. / Economics / D. Litt. et Phil. (Economics)

Text in English / This is a study of community protest against Barberton Mines (Pty) Ltd. It is a study of conflict and conflict resolutions. Barberton Mines (Pty) Ltd is one of the three gold mining companies in Barberton, and is in dire need of a bankable community/stakeholder relation management strategy, which should at least reduce, if not eliminate, the endless violent community protests against its operations. Methodologically, the study is predicated on a qualitative approach backed by oral interviews and the use of a survey. The study reveals that as much as the community appreciates Barberton Mines for its delivery in socio-economic development initiatives, Barberton Mines’ recruitment and procurement departments are not doing any justice in terms of preferred policy in favour of the locals/Barberton community. This is a key source of conflict. The results also reveal that the Barberton Mines Transformation Trust (BMTT), a vehicle established for socioeconomic development in Barberton, is considered to be ineffective by the community and is one of the causes of the conflict. The resolutions of the conflict include the effective implementation of the mining legislation and unrolling of the Mining Charter. The effectiveness and lack thereof of these conflict resolutions are subjected to analysis in this study. / Development Studies / M.A. (Development Studies)