Perceptions of small medium and micro enterprises (SMMEs) on resources required to influence involvement and participation in preferential procurement

Abstract

The preferential procurement policy objective of granting SMMEs preference in the allocation of government contracts is to guarantee a level playing field by granting access to the market. Yet, it is unclear what the current position of SMMEs is in participating in preferential procurement. SMMEs face obstacles that arise from inadequate resources availability in participating in preferential procurement. The purpose of this research report is primarily to explore the perceptions of the owner/and manager of SMMEs regarding significant resources that are required to influence involvement and participation in preferential procurement. Furthermore, to also explore the impact of participation in preferential procurement on employment generation.This descriptive quantitative research looks at a sample of 100 SMMEs from Gauteng that have been involved in preferential procurement at least once within a period of three years to date of participation in this study.The self administered web-based questionnaire was used to investigate perception of SMMEs on significance of resources that influence involvement and participation in preferential procurement and how their participation impacted employment generation.The results of the study indicated that SMMEs perceive administrative and supply capacity resources as the most significant resources to participate successfully. It further provided evidence of positive impact participation has on SMMEs growth in relation to employment generation.In contrast, the findings suggest that information resource is the least significant resource required to participate in preferential procurement. Lastly the results suggested that micro enterprises place less significance on supply capacity resource.