The challenges facing small, medium and microsize enterprise in public procurement: a case of Sundays River Valley Municipality
- Authors: Mkele, Makhaya Nelson
- Date: 2019
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Case studies Small business -- South Africa -- Eastern Cape Small business -- Research -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10948/40017 , vital:35675
- Description: The purpose of this study is to investigate challenges facing Small, Medium and Micro Enterprises (SMMEs) in order to improve the participation of SMMEs in public procurement processes within category B municipalities. A Total Quality Management approach was used to interpret the manner in which to install change within a selection of supplier procedures. The study employed desktop analysis to explain and describe the challenges SMMEs are facing in public procurement in the Sundays River Valley Municipality. Based on the discussions of the participation of SMMEs in public procurement, the challenges which exist within a centralised approach of public procurement were discovered. The findings of the study revealed that SMMEs are challenged by the lack of entrepreneurial coaching by local government, low demand for the commodities, lack of experience, skills and knowledge, limited access to debt finance, poor marketing skills, poor managerial and lack of planning skills, gaps in implementation of preference point system, poor management of core strategies of the preferential system, gaps in implementation of preference point system, poor management of the tender system, improper integration of central supplier database, globalisation and the impact of e-procurement on local government level. Subsequently, the study made recommendations in this regard.
- Full Text:
- Date Issued: 2019
- Authors: Mkele, Makhaya Nelson
- Date: 2019
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Case studies Small business -- South Africa -- Eastern Cape Small business -- Research -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10948/40017 , vital:35675
- Description: The purpose of this study is to investigate challenges facing Small, Medium and Micro Enterprises (SMMEs) in order to improve the participation of SMMEs in public procurement processes within category B municipalities. A Total Quality Management approach was used to interpret the manner in which to install change within a selection of supplier procedures. The study employed desktop analysis to explain and describe the challenges SMMEs are facing in public procurement in the Sundays River Valley Municipality. Based on the discussions of the participation of SMMEs in public procurement, the challenges which exist within a centralised approach of public procurement were discovered. The findings of the study revealed that SMMEs are challenged by the lack of entrepreneurial coaching by local government, low demand for the commodities, lack of experience, skills and knowledge, limited access to debt finance, poor marketing skills, poor managerial and lack of planning skills, gaps in implementation of preference point system, poor management of core strategies of the preferential system, gaps in implementation of preference point system, poor management of the tender system, improper integration of central supplier database, globalisation and the impact of e-procurement on local government level. Subsequently, the study made recommendations in this regard.
- Full Text:
- Date Issued: 2019
Perceptions in the implementation of supply chain management processes : the case of the Department of Local Government and Traditional Affairs in the Eastern Cape
- Authors: Aplom, Busisiwe
- Date: 2014
- Subjects: Business logistics -- South Africa -- Eastern Cape , Government purchasing -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:8346 , http://hdl.handle.net/10948/d1020781
- Description: When the African National Congress (ANC) took office in 1994 it introduced various policies that would govern budgetary and financial reforms in South Africa. The main objective was to modernize the management of the public sector. Even though government Departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. The key research objectives of the study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in the Eastern Cape Department of Local Government and Traditional Affairs This study has demonstrated perceptions in the implementation of Supply Chain Management (SCM) within the Department of Local Government and Traditional Affairs in the Eastern Cape Province, South Africa. The overwhelming majority of participants have shown dissatisfaction with the implementation of SCM. Service providers argue that there is no opportunity for them to develop as Small, Micro and Medium Enterprises (SMMEs) and only those service providers who are fully developed benefit from SCM. The study intends to establish and highlight the challenges that the Eastern Cape Department of Local Government and Traditional Affairs is presently faced with in regard to implementation procurement processes among staff members, managers and service providers This study is mainly qualitative but also exposes the reader to the quantitative research method
- Full Text:
- Date Issued: 2014
- Authors: Aplom, Busisiwe
- Date: 2014
- Subjects: Business logistics -- South Africa -- Eastern Cape , Government purchasing -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:8346 , http://hdl.handle.net/10948/d1020781
- Description: When the African National Congress (ANC) took office in 1994 it introduced various policies that would govern budgetary and financial reforms in South Africa. The main objective was to modernize the management of the public sector. Even though government Departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. The key research objectives of the study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in the Eastern Cape Department of Local Government and Traditional Affairs This study has demonstrated perceptions in the implementation of Supply Chain Management (SCM) within the Department of Local Government and Traditional Affairs in the Eastern Cape Province, South Africa. The overwhelming majority of participants have shown dissatisfaction with the implementation of SCM. Service providers argue that there is no opportunity for them to develop as Small, Micro and Medium Enterprises (SMMEs) and only those service providers who are fully developed benefit from SCM. The study intends to establish and highlight the challenges that the Eastern Cape Department of Local Government and Traditional Affairs is presently faced with in regard to implementation procurement processes among staff members, managers and service providers This study is mainly qualitative but also exposes the reader to the quantitative research method
- Full Text:
- Date Issued: 2014
An assessment of information systems supporting procurement reforms in the Eastern Cape provincial government
- Authors: Bosire, Samuel Mobisa
- Date: 2008
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Public finance -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:11620 , http://hdl.handle.net/10353/214 , Government purchasing -- South Africa -- Eastern Cape , Public finance -- South Africa -- Eastern Cape
- Description: As part of the on going financial management reforms, the South African Government introduced the Supply Chain Management (SCM) Framework. Since 2004, The Eastern Cape Provincial Government embarked on a process of ensuring that procurement reforms wrought by the advent of SCM are seamlessly ushered in. Information Technology (IT) and systems are a sine qua non in supporting the implementation of the SCM Framework. However, IT does not operate in a vacuum. Many other factors complement, supplement and influence the objectives sought through the use of Information Technology and systems. It is the confluence of this factors that eventually will determine that success or failure of using technology to support procurement reforms in government. The research investigates the factors affecting the success of the Information systems underlying SCM in the Eastern Cape Provincial government. Data for the research was gathered using a questionnaire administered to all Eastern Cape Provincial Government departments. The research borrows from Heeks’ ITPOSMO model in assessing SCM and Information Systems structures and processes and gauging their state of readiness to embrace procurement reforms envisaged through the SCM Framework. Because of the importance of having a strong IT functional unit in any government department, the study highlights IT issues that typically confront IT managers, especially in the public sector. Heeks’ ITPOSMO model emerges as a sufficient framework for identifying gaps that currently exist between the reality and perceptions on the readiness of IT to adequately support government procurement reforms. The dissertation concludes that the success of the system is dependent not only on the technological component of the system, but also on other factors.
- Full Text:
- Date Issued: 2008
- Authors: Bosire, Samuel Mobisa
- Date: 2008
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Public finance -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:11620 , http://hdl.handle.net/10353/214 , Government purchasing -- South Africa -- Eastern Cape , Public finance -- South Africa -- Eastern Cape
- Description: As part of the on going financial management reforms, the South African Government introduced the Supply Chain Management (SCM) Framework. Since 2004, The Eastern Cape Provincial Government embarked on a process of ensuring that procurement reforms wrought by the advent of SCM are seamlessly ushered in. Information Technology (IT) and systems are a sine qua non in supporting the implementation of the SCM Framework. However, IT does not operate in a vacuum. Many other factors complement, supplement and influence the objectives sought through the use of Information Technology and systems. It is the confluence of this factors that eventually will determine that success or failure of using technology to support procurement reforms in government. The research investigates the factors affecting the success of the Information systems underlying SCM in the Eastern Cape Provincial government. Data for the research was gathered using a questionnaire administered to all Eastern Cape Provincial Government departments. The research borrows from Heeks’ ITPOSMO model in assessing SCM and Information Systems structures and processes and gauging their state of readiness to embrace procurement reforms envisaged through the SCM Framework. Because of the importance of having a strong IT functional unit in any government department, the study highlights IT issues that typically confront IT managers, especially in the public sector. Heeks’ ITPOSMO model emerges as a sufficient framework for identifying gaps that currently exist between the reality and perceptions on the readiness of IT to adequately support government procurement reforms. The dissertation concludes that the success of the system is dependent not only on the technological component of the system, but also on other factors.
- Full Text:
- Date Issued: 2008
An evaluation of the implementation of the preferential procurement policy framework act (No 5 of 2000) with reference to selected municipalities in the province of the Eastern Cape
- Authors: Nano, Nandipha
- Date: 2008
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Law and legislation -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:8216 , http://hdl.handle.net/10948/1019 , Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Law and legislation -- South Africa -- Eastern Cape
- Description: Background and Rationale: South Africa is in its second decade of democracy. Since the introduction of democracy in 1994, the South African government and its citizens are making strides into overhauling the country to make it one of the best habitable countries in the world. All these changes are accompanied by challenges regarding the types of resources required to accomplish this when delivering services to the communities. In order for the government to accomplish this, systems and procedures which are supported by legislation and operational frameworks should be developed, implemented, monitored and reviewed when necessary. Legislation which has been developed to guide and regulate public procurement includes the Preferential Procurement Policy Framework Act (Act 5 of 2000). The previous procurement approaches had various fallacies. For example, there was no accountability, no transparency, no equitable distribution of economic resources and no supporting structures to oversee the process. The government then realised the need for having an integrated approach towards public acquisition of goods and services. The public service should operate in an environment where there will be fair, equitable, transparent, competitive and value for money in procurement. 2 The objective of the Preferential Procurement Policy Act (Act 5 of 2000) is to give effect to section 217(3) of the Constitution of the Republic of South Africa (Act 108 of 1996). Section 217 (3) stipulates that national legislation must prescribe a framework within which the procurement policy may be implemented. Preferential Procurement Policy Framework Act (Act 5 of 2000) aims at redressing the past racial imbalances, where race and gender were used to control productive resources. In order to address the shortfalls of the previous systems which failed to provide equal competition opportunities to all the people of South Africa, the mandate, as stipulated in the amended Section 217 of the Constitution of the Republic of South Africa (Act 108 of 1996), has been implemented. This section calls on government and organs of the state to apply a preference point system to enhance and give preference to the historically disadvantaged individuals or designated groups, who in the past, were victims of unfair discrimination on the basis of race, gender or disability. The Preferential Procurement Policy Framework Act (Act 5 of 2000) and its related regulations and systems emanate from Section 217 (3) of the Constitution of the Republic of South Africa, (Act 108 of 1996). The government has, since 1995, started engaging in a number of initiatives with the purpose of restructuring the procurement. One of the initiatives was the development of the Green Paper on Public Sector Procurement Reform in South Africa in 1997. This paper is a discussion document which contains various proposals aimed at achieving the objectives of good governance, developing and utilising the country’s human resources potential to the full, and encouraging a well-developed and competitive business sector (http://www.info.gov.za/greenpapers/1997/publicproc.htm). 3 Subsequent to the Green Paper on Public Sector Procurement Reform the government published the Preferential Procurement Regulations in 2001, in terms of Section 5 of the Preferential Procurement Policy Framework. The government’s aim was to elicit contributions and discussions from role- players and interested parties. These inputs are crucial in a country that is committed to democracy. It can be deduced that the Preferential Procurement Policy Framework is a tool that is intended to provide direction and guidance to public officials when they engage in the acquisition of goods and services whilst giving leverage and preference to those who have been victims of the past imbalances. There is a perception that business opportunities favour individuals and businesses that are well established and the emerging business owners are marginalised. The reforms in the procurement processes that have been put in place are intended to ensure that there is equality, transparency and accountability in the allocation of business opportunities. Preference has to be afforded to the previously marginalised people to play a role in the public sector procurement and enhance income generation. The aims of the Preferential Procurement will be defeated if there are no systems to control and monitor the engagement of historically disadvantaged individuals. The affirming of such business owners should be viewed as a tool for the distribution of wealth, job creation and a poverty alleviation strategy from the side of government. The rationale for the research, therefore, is to establish whether the historically disadvantaged individuals’ lives are improving and bringing about sustainable economic development in their lives.
- Full Text:
- Date Issued: 2008
- Authors: Nano, Nandipha
- Date: 2008
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Law and legislation -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:8216 , http://hdl.handle.net/10948/1019 , Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Law and legislation -- South Africa -- Eastern Cape
- Description: Background and Rationale: South Africa is in its second decade of democracy. Since the introduction of democracy in 1994, the South African government and its citizens are making strides into overhauling the country to make it one of the best habitable countries in the world. All these changes are accompanied by challenges regarding the types of resources required to accomplish this when delivering services to the communities. In order for the government to accomplish this, systems and procedures which are supported by legislation and operational frameworks should be developed, implemented, monitored and reviewed when necessary. Legislation which has been developed to guide and regulate public procurement includes the Preferential Procurement Policy Framework Act (Act 5 of 2000). The previous procurement approaches had various fallacies. For example, there was no accountability, no transparency, no equitable distribution of economic resources and no supporting structures to oversee the process. The government then realised the need for having an integrated approach towards public acquisition of goods and services. The public service should operate in an environment where there will be fair, equitable, transparent, competitive and value for money in procurement. 2 The objective of the Preferential Procurement Policy Act (Act 5 of 2000) is to give effect to section 217(3) of the Constitution of the Republic of South Africa (Act 108 of 1996). Section 217 (3) stipulates that national legislation must prescribe a framework within which the procurement policy may be implemented. Preferential Procurement Policy Framework Act (Act 5 of 2000) aims at redressing the past racial imbalances, where race and gender were used to control productive resources. In order to address the shortfalls of the previous systems which failed to provide equal competition opportunities to all the people of South Africa, the mandate, as stipulated in the amended Section 217 of the Constitution of the Republic of South Africa (Act 108 of 1996), has been implemented. This section calls on government and organs of the state to apply a preference point system to enhance and give preference to the historically disadvantaged individuals or designated groups, who in the past, were victims of unfair discrimination on the basis of race, gender or disability. The Preferential Procurement Policy Framework Act (Act 5 of 2000) and its related regulations and systems emanate from Section 217 (3) of the Constitution of the Republic of South Africa, (Act 108 of 1996). The government has, since 1995, started engaging in a number of initiatives with the purpose of restructuring the procurement. One of the initiatives was the development of the Green Paper on Public Sector Procurement Reform in South Africa in 1997. This paper is a discussion document which contains various proposals aimed at achieving the objectives of good governance, developing and utilising the country’s human resources potential to the full, and encouraging a well-developed and competitive business sector (http://www.info.gov.za/greenpapers/1997/publicproc.htm). 3 Subsequent to the Green Paper on Public Sector Procurement Reform the government published the Preferential Procurement Regulations in 2001, in terms of Section 5 of the Preferential Procurement Policy Framework. The government’s aim was to elicit contributions and discussions from role- players and interested parties. These inputs are crucial in a country that is committed to democracy. It can be deduced that the Preferential Procurement Policy Framework is a tool that is intended to provide direction and guidance to public officials when they engage in the acquisition of goods and services whilst giving leverage and preference to those who have been victims of the past imbalances. There is a perception that business opportunities favour individuals and businesses that are well established and the emerging business owners are marginalised. The reforms in the procurement processes that have been put in place are intended to ensure that there is equality, transparency and accountability in the allocation of business opportunities. Preference has to be afforded to the previously marginalised people to play a role in the public sector procurement and enhance income generation. The aims of the Preferential Procurement will be defeated if there are no systems to control and monitor the engagement of historically disadvantaged individuals. The affirming of such business owners should be viewed as a tool for the distribution of wealth, job creation and a poverty alleviation strategy from the side of government. The rationale for the research, therefore, is to establish whether the historically disadvantaged individuals’ lives are improving and bringing about sustainable economic development in their lives.
- Full Text:
- Date Issued: 2008
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