Treasury tackles snags for small enterprises
KZN Treasury's Goodman Khumalo guides Zululand entrepreneurs through its tendering processes
AS many owners of local start-ups feel the mounting pressure of rising costs with rare contract opportunities, the KwaZulu-Natal Provincial Treasury stepped in to show them the way forward.
At a small, medium and micro enterprises (SMME) forum meeting held at the Zululand Chamber of Business Foundation (ZCBF) Pelican Hall on Tuesday, KZN Treasury Supply Chain Management (SCM) Deputy Manager Goodman Khumalo addressed local entrepreneurs on their frustrations with the government tendering system.
‘The SMME sector is a high priority for government in boosting the economy and lowering the high unemployment rate, but it remains a constitutional obligation to ensure that the SCM system remains fair, equitable, transparent, competitive and cost-effective,’ said Khumalo.
To tender for any provincial government contracts, Khumalo advised SMMEs to register for a business identity number, known as a ZNT number.
‘The amended KZN policy framework sets a tone for the establishment of a KZN suppliers database, listing businesses doing work with provincial organs of the state.
‘It assists in reporting requirements on provincial spending across sectors,’ said Khumalo.
He said businesses can access government opportunities by subscribing to the database and keeping an eye out for government tender bulletins via the post, internet, provincial newspapers, bulletin boards and departmental web sites.
‘Be ‘sector-focused’ – know and understand which trade sector you want to operate in to be classified into the relevant government institution.’
Khumalo added the necessity for businesses to read tender documents carefully and answer all questions truthfully.
‘If you get caught lying, it could disqualify your offer and lead to further action,’ he said.
B-BBEE codes
Last year, the Department of Trade and Industry (DTI) gazetted its revised Broad-Based Black Economic Empowerment (B-BBEE) codes to boost small businesses in their attractiveness to supply to large companies and government.
By October this year, all businesses, regardless of the level of black ownership, with an annual turnover of less than R10 million will be categorised as Exempted Micro Enterprises (EMEs).
‘The focus is no longer limited only to ownership, but now applies to all seven elements on your BBBEE scorecard,’ said Khumalo.
