A lot of SMME development initiatives have been subsidised from the funds accumulated from taxpayers. In the promotion of sustainability and growth of SMMEs within developing countries particularly within the BRICS, South Africa is lagging despite its efforts over the past 17 years. According to STATS SA, SA’s unemployment rate for 2011 was between 24-36% and economic growth was 3.1%, the Eastern Cape Province is the poorest province within SA and therefore residence within the province is looking at start-up businesses to better their economic situation. The NMBM economic growth and employment is driven largely by its Integrated Development Plan (IDP) 2013/2014. Aims and objectives:To develop a supply chain management policy that addresses the challenges faced by infrastructure officials, supply chain management practitioners and ward councillors with regards to SMME engagement; and, Investigating the strengths, weaknesses and effectiveness of the current supply chain management policy employed within Nelson Mandela Bay Municipality with regards to SMME engagement. Research methodology: A questionnaire was used in this study to conduct quantitative research; the questionnaire was also used as a data collection tool. Valuable information was gathered from SMMEs residing in the Nelson Mandela Bay Municipal area who operate in the civil engineering field. These SMMEs formed the core research sample. Results: The findings suggest that the current supply chain management (SCM) policy of the Nelson Mandela Bay Municipality (NMBM) does not adequately address the challenges encountered by SMMEs. This suggests the SCM policy is inadequate and the policy must be amended to address its short falls:There is a need for a contractor development programme in the NMBM to assist the Potentially Emerging (PE) contractors within its boundaries;The NMBM is regulating the SMME market for competitiveness to some extent with its SCM policy;Even though the market is being regulated for competitiveness, it is not regulated with regards to new entries into the market; There is a need for the NMBM to provide business development services to SMME’s within its boundaries; The majority of SMME’s believed that there is no gender discrimination within the banking sector;The NMBM is an efficient government institution when it comes to settling their debt in a timely manner;The NMBM must appoint a committee to address the problems faced by SMME’s within its boundaries;South Africa’s National Credit Act (NCA) prevents SMME’s from acquiring an uncontrollable amount of debt. Conclusion: SMME’s within the NMBM enjoy a healthy credit record; these SMME’s also pay their suppliers in a timely fashion. Employees of these SMME’s are adequately compensated for their services. Some SMME’s service the equipment regularly and some do not. Some SMME’s are able to cover their overheads from the projects they undertake and some are not. SMME’s residing in the NMBM have experienced a growth in their business over the last financial year, even though they have not received substantial work over this period. The quality of the end product produced by some SMME’s meets the standard required by the NMBM. Recommendations: To address the development needs of the SMME’s the SCM policy needs to be amended to provide business development services and off-the-job training. To address the access to finance needs of the SMME’s the SCM policy needs to be amended to assist SMME’s in acquiring start-up capital, getting a reduced interest rate and creating work opportunities through micro-financing.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:26901 |
| Date | January 2014 |
| Creators | Timotheus, Francois |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xiv, 123 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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