Written by Werner van Rooyen
The determination of this question lies with the Organ of State that issued the tender. Unfortunately, the reality is that few tenders are granted to new businesses. While some tenders do go to start-ups, the majority are awarded to established companies with a proven track record. However, the government is committed to fostering the growth of SMMEs, which is encouraging news for new enterprises!
Certain industry sectors, such as cleaning, grass cutting, and security, have been identified by Organs of State as areas where they will actively seek to award tenders to start-ups. Moreover, the new Preferential Procurement Regulations 2017 include three specific regulations that Organs of State can utilize to benefit designated groups by subcontracting 30% of a tender to Small, Medium, and Micro Enterprises (SMMEs).
This means that when an Organ of State issues a large tender, it may allocate a portion of it to SMMEs or start-up enterprises. Consequently, your start-up could potentially be the fortunate recipient of a significant tender.
To enhance your chances of meeting the minimum requirements of a tender, there are steps that start-ups can take.
Starting a business is a challenging endeavor, and launching one specifically to respond to tenders is even more demanding. It is advisable to establish a small business, gain some operational experience, generate income, and then begin pursuing tenders.
Written by Werner van Rooyen – Director – How to Tender (Pty) Ltd – Your premier partner for tender training and assistance. To explore this topic further and learn about other tender conditions, consider attending our “Become a Tender Expert” two-day workshops and webinars. You can register online at www.howtotender.co.za/workshops/. If you need further information, please contact us at info@howtotender.co.za.
Remember: We offer a variety of manuals and guides to aid you in completing your tender documents. More information is available.