Examining Municipal Procurement Practices with Rural Small and Medium Enterprises (SMEs) in uMhlabuyalingana.

Abstract

This study examines how the procurement policies of uMhlabuyalingana Municipality impact small and medium-sized rural businesses (SMEs). The study intended to evaluate the perceptions of local businesses in terms of their relationship with the municipality as well as the extent to which the municipality integrates SMEs into its procurement procedures. Using a qualitative research methodology, data was gathered by interviewing SME owners and municipal procurement officials. This allowed for a detailed analysis of the dynamics opportunities and challenges affecting this relationship. Despite the efforts made by uMhlabuyalingana Municipality to promote SME inclusion through its policies such as lot-sizing streamlined tender documentation and targeted training initiatives, the research findings demonstrate that significant barriers still exist. Resource constraints, a lack of administrative capacity and compliance issues are some of the ongoing obstacles. However, the initiatives have strengthened the local economy and increased SME participation in public procurement despite the ongoing challenges. Respondents emphasized the importance of communication, continuous feedback mechanisms and collaborative policy that are design to close implementation gaps and improve outcomes. It is highlighted in this study that in order to fully realize the potential of inclusive procurement policies, strategic interventions like enhanced digital infrastructure, public-private partnerships and increased administrative efficiency are required. By balancing policy objectives with practical realities, uMhlabuyalingana Municipality can create a sustainable business ecosystem that promotes economic growth, community development and rural SMEs. In addition to contributing to the body of knowledge about inclusive procurement practices this study offers useful insights to practitioners and policymakers committed to supporting rural economies.