Public procurement challenges faced by Small, Medium, and Micro Enterprises (SMMEs) inTshwane Metropolitan Municipality

Abstract

This research report investigated the challenges encountered by small, medium, and micro enterprises (SMMEs) in navigating the landscape of public procurement within the Tshwane Metropolitan Municipality. As SMMEs played a pivotal role in fostering economic growth and development, understanding the obstacles they faced in participating effectively in public procurement processes was crucial for devising targeted policy interventions and support mechanisms. The study employed the qualitative approach to provide a comprehensive overview of the challenges confronting SMMEs in accessing and competing for government contracts. Through thematic analysis, key themes emerged, including bureaucratic barriers, lack of access to information, capacity constraints, and issues related to transparency and fairness in procurement practices. Findings indicated that SMMEs encountered numerous barriers throughout the procurement cycle, ranging from limited awareness of tender opportunities to difficulties in meeting stringent qualification criteria and accessing financing. Moreover, the opaque and complex nature of procurement processes often disadvantaged smaller businesses, exacerbating inequalities and hindering their ability to grow and thrive in the marketplace. This research contributed to the existing literature by shedding light on the specific challenges faced by SMMEs in the context of public procurement in Tshwane. The findings underscored the need for targeted policy interventions aimed at streamlining procurement procedures, enhancing access to information and capacity-building initiatives, and promoting greater inclusivity and transparency in government contracting practices. Ultimately, addressing these challenges was imperative for fostering a more conducive environment for SMMEs to participate actively in public procurement, thereby unlocking their potential as engines of economic growth and drivers of socio-economic transformation within the Tshwane Metropolitan Municipality.