Endeavor White Paper 2013: The State of Entrepreneurship in South Africa

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Page 11 of 17

It is recognised the world over that nur- turing and developing high-impact en- trepreneurs is the best way to promote economic growth and create jobs. The South African Government has acknowl- edged this by introducing an Enterprise Development component in its BBBEE legislation, which has, in turn, provided the private sector with an effective vehi- cle for driving SMME growth and reduc- ing unemployment. And, in this regard, preferential procurement is seen to be an aspect of enterprise development. Sponsors of the Summit, SAP and SAB, both support and promote enterprise and supplier development. SAB in par- ticular has developed a number of best practices in this regard. The company's enterprise development initiatives have three main strands: Investing in the company's value chain to support local suppliers; encouraging broader entre- preneurship in local communities; and supporting smallholder farmers. Many of its peers however are making slower progress. The reasons are com- plex and varied but three factors were identified by the panel as creating the greatest barriers for entrepreneurial growth. The first is that entrepreneurs are too reliant on the role that Government is to play in driving SMME-friendly procure- ment policies. Instead of waiting for these changes to take effect, entrepre- neurs could improve their attractiveness in the procurement space by ensuring that: their businesses are visible and easy to contact; they are able to deliver on their promises; their products con- form to the required standards; their prices are competitive; and they fully understand the procurement environ- p PROCUREMENT 12 One of the attendees makes a valuable contribution to the discussion.

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