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Barriers to African black contractors in the Western Cape construction industry
Author(s)
Fortuin, Clive Jacobus
Date Issued
2004
Type
Thesis
Publisher
Cape Technikon
Abstract
The procurement of goods and services in the public sector accounts for a huge
portion of domestic spending. An improvement in government procurement has a
direct effect on the country's economic performance. Government procurement
systems are subject to increasing scrutiny and reform due to domestic and
international pressure. Procurement reform is being driven by the principles of
democracy and fairness, the opening of the global market, and the small, medium
and micro enterprises (SMMEs) that have been excluded from government
procurement.
Research has been done on the development of SMMEs in South Africa,
highlighting the barriers experienced by these enterprises. As only limited research
has been done on the barriers experienced by the sub-category of African black
SMMEs, this study focuses on those barriers experienced by African black SMMEs
in the construction industry in the Western Cape, with specific emphasis on the
Emerging Contractor Development Programme (ECDP) of the National Department
of Public Works in Cape Town.
The purpose of this study was to determine the reasons why African black
contractors cannot find the opportunities that they seek. The opportunities may be
available, but the financial capacity of these contractors is limited. The lack of
finance or the lack of access to finance causes these contractors not to be able to
perform as anticipated.
The survey was done among African Black contractors to determine from them what
their experiences were with the Emerging Contractor Development Programme. It
also focused on the number of opportunities given to them by the National
Department of Public Works and the effect of the lack of finances.
portion of domestic spending. An improvement in government procurement has a
direct effect on the country's economic performance. Government procurement
systems are subject to increasing scrutiny and reform due to domestic and
international pressure. Procurement reform is being driven by the principles of
democracy and fairness, the opening of the global market, and the small, medium
and micro enterprises (SMMEs) that have been excluded from government
procurement.
Research has been done on the development of SMMEs in South Africa,
highlighting the barriers experienced by these enterprises. As only limited research
has been done on the barriers experienced by the sub-category of African black
SMMEs, this study focuses on those barriers experienced by African black SMMEs
in the construction industry in the Western Cape, with specific emphasis on the
Emerging Contractor Development Programme (ECDP) of the National Department
of Public Works in Cape Town.
The purpose of this study was to determine the reasons why African black
contractors cannot find the opportunities that they seek. The opportunities may be
available, but the financial capacity of these contractors is limited. The lack of
finance or the lack of access to finance causes these contractors not to be able to
perform as anticipated.
The survey was done among African Black contractors to determine from them what
their experiences were with the Emerging Contractor Development Programme. It
also focused on the number of opportunities given to them by the National
Department of Public Works and the effect of the lack of finances.
Additional information
Thesis (MTech(Business Administration))--Cape Technikon, Cape Town, 2004
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