Procurement profession : a tool for competitiveness and empowerment

Abstract

The emerging manufacturing businesses in the Vaal Triangle Metropolitan Area operate along the fringes of the mainstream economy and for these businesses, breaking into major markets dominated by large players, is often extremely difficult. It is, however, of paramount importance for the development of these businesses, that this breakthrough, should take place. For these businesses to break into the major markets, there should be a synergistic relationship between the public and private sectors in order to embrace social investment as a common vision towards directing the economy towards one which is stable, nurtures empowerment and increases competitiveness. In general terms, the development of the economy depends on the effective participation of both the private and public sectors by the introduction of initiatives that will create sustainable supply opportunities for the manufacturing SMMEs The study examines the role played by the procurement industry in the creation of opportunities, geared towards accommodating manufacturing SMMEs in the purchasing ambit, especially those from the historically disadvantaged ranks in the mainstream economy. The research is supported by a detailed literature study on public procurement, issues relating to manufacturing SMMEs as well as Affirmative Procurement. The empirical part of the study involved conducting both a preliminary qualitative study and the main survey. The main survey consisted of a questionnaire that was personally distributed to and collected from the respondents. The response rate was a meaningful 64%. Research findings indicated that the procurement profession is an important tool for competitiveness and the empowerment of manufacturing SMMEs. Some recommendations are made in the last chapter.