GOVERNMENT PROCUREMENT POLICIES AND BLACK SMALL AND MEDIUM BUSINESS ENTERPRISES

Abstract

Effective and efficient procurement lies at the heart of the South African government‟s drive to improve the delivery of public services. There are significant concerns about how SMEs can thrive in the South African environment especially through the government procurement system. A sample of 40 SMEs was selected for this study to test if they do benefit from the current procurement system as well as to get their perceptions about the fairness and effectiveness of the South African government departments‟ procurement system. The bulk of the respondents felt that the current South African procurement system was ineffective. The research question focused in key areas of government‟s procurement like SME Empowerment, Competitive Tendering, Corruption and Bureaucracy. We collected data via a questionnaire which we distributed to a sample of 40 randomly selected SMEs. The study was limited to the key areas identified. Extant literature was used to drive the analysis and interpretation of the findings as well as to highlight and support possible intervention mechanisms as used in other parts of the world.