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.
| Identifer | oai:union.ndltd.org:NWUBOLOKA1/oai:dspace.nwu.ac.za:10394/4505 |
| Date | January 2010 |
| Creators | Mokakala, Lethola Lazarus |
| Publisher | North-West University |
| Source Sets | North-West University |
| Detected Language | English |
| Type | Thesis |
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