Ineffective ESD is a consequence of misaligned government empowerment policies

July 18, 2019

By Marcus Ambe & Sibongile Shongwe

Various scholars have offered reasons as to why small businesses, even enterprise and supplier development (ESD) beneficiaries, fail: a lack of finance, access to opportunities, skills, etc. However, the South African government has various programmes that address these issues, including incubator programmes. Why is it then that ESD is not effective within public institutions when transformation policies are legislated?

To begin to answer this question, we must unpack a misalignment between two Acts, the Broad-based Black Economic Empowerment Act (B-BBEEA) and the Preferential Procurement Policy Framework Act (PPPFA), and the effect this misalignment has on the implementation of ESD.

How is ESD implemented?
ESD is implemented in organisations by the supply chain management (SCM) function, through the procurement of works, goods and services. Public SCM is governed by National Treasury (NT) and thus SCM policies and strategies (see What is ESD?) must align with NT regulations. NT regulates SCM through the PPPFA.

Read the full article here: Ineffective ESD is consequence of