SMME procurement issues in local government : a Gauteng metropolitan study

Abstract

This article explores current issues pertaining to the SMME procurement process on a local government sphere within the scope of three Gauteng metropolitan areas. The process itself is known to be the subject of various concerns regarding, firstly, the efficiency and effectiveness of local government and, secondly, entrepreneurial performance on the part of SMMEs. Government procurement offers rewarding business opportunities for the SMME sector, with the resultant beneficial outcomes, such as economic growth and social-economic development. This process has to integrate an efficient entrepreneurshipenabling environment that supports and simplifies the procurement process and contributes to developing long-term business sustainability. This study endeavours to create a platform for enablement by identifying the current issues that impede a positive and effective procurement system from both the supplier and government/client sides of the value chain. The research study is of particular relevance to policy makers and local government procurement managers as it examines the extent and characteristics of SMME involvement in the procurement process in terms of benefits and risks, and enabling and constraining factors towards business efficiency.