| Summary: | Thesis (MDF)--Stellenbosch University, 2011. === Small, medium and micro enterprises (SMMEs) play an important role in the economic growth and
development of any economy. They contribute to the goals of growth, equity, job creation and
poverty reduction in different ways. Given the importance of the SMME sector, governments
throughout the world including the South African government, have focused their attention on the
development of this sector to promote economic growth, income distribution and employment
opportunities.
Most SMMEs in South Africa fail due to a variety of reasons, including a lack of access to markets,
which is one of the critical factors for the survival and growth of SMMEs. The government of South
Africa has introduced the Preferential Procurement Policy Framework Act (Act 5 of 2000) to
address the challenge of market access for SMMEs. The Act is aimed at utilising the purchasing
power of government as an instrument of SMME development. SMMEs, especially those owned by
historically disadvantaged individuals, are afforded an opportunity to access markets they would
otherwise find difficult to penetrate.
Given the importance of access to markets to SMMES, the study seeks to analyse the role of
preferential procurement in Local Government with specific reference to Ekurhuleni Metropolitan
Municipality (EMM), as an instrument of promoting the development of historically disadvantaged
SMMEs in South Africa.
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