Exploring the impact of procurement on sustaining small and medium enterprises in Mpumalanga

Abstract

SMEs are perceived to be the drivers of most nations socio-economic development agenda, yet limited studies have focused on the impact of procurement practices on sustaining SMEs. Despite the efforts of the government to shepherd the growth and development of SMEs through public policies and declarations, the failure rate of SMEs globally, including South Africa, is high. The main aim of this study was to explore the impact of procurement processes on sustaining SMEs in the Mpumalanga Province of South Africa. Four research objectives were explored using a quantitative research methodology that followed a descriptive research design. About 40 questionnaires were self-administered, and they were all completed. Descriptive statistics and inferential statistics were used to analyse data. Results were presented using pie charts and graphs. Results show that factors such as lack of appropriate legislation to regulate the procurement process, lack of training, and slow adoption of technology affect the sustainability of SMEs. The procurement process requires adequate knowledge of the various legislative frameworks to achieve compliance. As revealed in the results, most SME owners and managers lack the orientation to the procurement process. Adopting e-procurement technologies, training, and improving access to finance are the major strategies identified to be useful for sustaining SMEs. The study recommends a participatory and collaborative approach to solving challenges faced by SMEs. The process and legal frameworks must be straightforward, and easy to understand to encourage the development and sustenance of SMEs in South Africa.