I see it happening all the time. Governments issue edicts, laws and regulations, attempting to force their internal purchasing departments to support SMME's.
One of two things occurs. Firstly they attempt to set a financial limit, without any thought in to how the amount is derived. Secondly they take the tried and trusted, gardening, security and cleaning services and give these out. None of these are likely to make a meaningful contribution to GDP growth, albeit a great starting point. The problem is that it is seldom taken beyond this point.
A thorough analysis is required of what is purchased. The value is initially irrelevant. What is more important is whether the SME's have the necessary skills. Too often they do not have the skills, and this leads to delivery failure and the enhancement of the "SME's are bad suppliers" theory.
Careful analysis of the governments purchasing needs to be made and then suitable SME's sought to provide these goods and services. Thereafter, it is necessary to match this skills base to large private enterprise purchasers as well, and to expand the market for the SME's beyond just government. These SME's need to create sound sustainable businesses, and this requires ongoing business from multiple sources.
Government need to understand this and look at this task which is currently treated in a poor manner, in a more serious manner.
Rob Smorfitt
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Rob Smorfitt
(Visit Rob's Website)
Based in Pietermaritzburg, South Africa.
Married with 3 children (22, 21 and 14).
Have an MBA and am currently doing a PhD
in entrepreneurial success. I have been
self employed since 1982. I have started
26 and bought 5 businesses since then.
Most were sold again and a few were shut
down because of a lack of profitability.
Many were run by staff or family while I
worked in full time employment in my
bigger businesses. 6 books written in SME
and Project Management educational field.
Written articles for various magazines,
newspapers and websites.
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