In his study, the impact of preferential procurement on Small, Medium and
Micro Enterprises (SMMEs') was evaluated. Most developing countries,
including South Africa are characterised by a rapidly growing population, high
unemployment rate and poverty. To redress the situation, the South African
government, both at National and Provincial level has shown an interest in the
development and sustainability of SMMEs'
There is a dire need for the redistribution of income and opportunities to the
historically disadvantaged individuals. The South African economy is not
labour absorbing because of the inherited capital-intensive structure of the
economy. The South African SMME sector is far from homogenous and would
require a fine tuned set of interventions rather than the generic assistance
currently provided. Only a few dynamic SMMEs' show a potential to contribute
to rapid employment creation whilst survivalist activities constitute the vast
majority of South African SMMEs' (Kesper, 2000).
It is also important for government to know the value of SMMEs', especially in
the creation of employment and the impact that preferential procurement has
on the SMME sector within the Molopo Region of the North West Province.
This study should serve as an informative reference to the North West
Province and other relevant stakeholders, seeking greater insight into the
effect that preferential procurement has on SMMEs' within the Molopo Region.
In order to obtain a meaningful insight on the data collected, two sets of
questionnaires were developed. The questionnaires were structured so as to
get the views of :
The management of the Department of Finance.
Small, Medium and Micro Enterprises.
The tabular and graphical representations indicate the responses from the
management of the Department of Finance and the owners of SMMEs' within
the Molopo Region.
Personal interviews were also carried out in order to obtain a meaningful
insight into the research.
However, there were some research limitations to the study as indicated
hereunder:
On going changes of government rules and regulations.
The continuous revision of government programmes.
Restructuring within government departments.
The results of the study reflect that SMMEs' do generate employment and the
management of the Department of Finance are fully aware of the impact that
preferential procurement has on the SMME sector within the Molopo Region,
with respect to job creation, empowerment and sustainability of the SMMEs'.
The need for a fully integrated and up to date database cannot be over
emphasised.
By contributing to the development of the country's economy, SMMEs' will
facilitate a greater and more equitable distribution of wealth. It will also assist
in reducing the gap between small and big businesses, allowing businesses to
meet the challenge of a global competitive economy. / (MBA) North-West University, Mafikeng Campus, 2004
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nwu/oai:dspace.nwu.ac.za:10394/11440 |
| Date | January 2004 |
| Creators | Udayan, Muthukrishna |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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