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Inclusive Public Procurement for Emerging Contractors in South Africa: Barriers to Participation and Strategies for Sustainable Smme Development

Year: 2026
Type: article
Abstract: Public procurement represents a critical lever for economic empowerment and transformation in South Africa, yet emerging contractors and SMMEs (Small, Medium and Micro Enterprises) continue to face substantial barriers to meaningful participation. This paper investigates the structural, administrative, financial, and capacity-related challenges that hinder SMME inclusion in public procurement processes. Drawing on a review of current literature, policy frameworks, and empirical studies, the research identifies key obstacles such as complex compliance requirements, limited access to finance, lack of technical skills, information asymmetries, and institutional constraints. The methodology incorporates document analysis and stakeholder interviews to provide a comprehensive understanding of the procurement landscape and SMME experiences. Findings highlight the need for targeted policy reforms, capacity-building initiatives, and improved access to information, and financial support mechanisms to foster an enabling environment for emerging contractors. The analysis further reveals that effective collaboration between government, industry bodies, and SMMEs is essential to dismantle systemic barriers and promote fair competition. The paper concludes with actionable recommendations for government agencies, procurement officials, and SMME support organizations, emphasizing the importance of inclusive procurement practices in driving sustainable SMME development and broader economic transformation in South Africa. By addressing these challenges, public procurement can serve as a catalyst for inclusive growth, job creation, and long-term socio-economic advancement.
DOI: 10.5281/zenodo.22126829
Language: English
Open Access status: green
OpenAlex ID: W7204480745
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