Overview of the policy and institutional landscape for enterprise development and preferential procurement in South Africaby PHILIPS, S & PILLAY, V, 2009
Research Report. Centre for Poverty Employment and Growth, Human Sciences Research Council
Pillay and Phillips review the South African policy and institutional landscape for preferential procurement and enterprise development. They focus on the use of these two BBBEE Code elements in broader socio-economic development. The various Acts, strategies, policies and industry sector charters all have a common goal: empowering previously disadvantaged individuals through meaningful participation in the economy. However, the frameworks that are meant to support enterprise development and preferential procurement also have the potential to create confusion. This paper reveals various gaps in and/or barriers to their implementation and the achievement of their socio-economic goals. The frameworks are not clearly linked, and it is unclear how they support each other and facilitate initiatives to achieve development goals. There are also no guidelines on how enterprise development and preferential procurement can be achieved in the private sector. From a developing enterprise perspective, regulatory and compliance requirements that impede growth and job creation and have negative (unintended) consequences should be addressed. Strategies are also needed to address the needs of women and people living with disabilities.