Abstract
In South Africa, the SMME sector is responsible for employing between 50 and 60 percent of the
total labour force and contributes approximately 34 percent of Gross Domestic Product (GDP)
However, numerous challenges have caused supply chains and large mining companies to be
hesitant to engage SMMEs due to perceived risks in a highly competitive environment. This study
thus aimed to explore these challenges in order to develop an enterprise development framework
to achieve mutually beneficial relationships between SMMEs and large mining companies. The
literature reviewed in the study highlighted what previous scholars and researchers found
regarding the importance of ensuring the SMME sector is not ignored, and how big businesses
can support and develop the sector for mutual benefit and ultimately, to positively contribute to
the economy. A qualitative research approach in the form of interviews was adopted to gain a
subjective assessment of attitudes, opinions and behavior of the selected sample. An interpretivist
paradigm was further adopted to interpret and understand the world from the perspective of its
participants. Interviews were used to collect the data and obtain information during a structured
conversation and based on a prearranged set of questions. Sixteen (16) participants were
selected using non-probability and purposive sampling, comprising of professionals in
management from a mining company, managers and owners from SMMEs and senior office
bearers from the regulator - DMRE. Data was analysed using thematic analysis and the main
themes and codes identified were used to arrive at the findings, draw a conclusion and give
recommendations. The study found numerous challenges, but concluded that there are twelve
main areas that need to be addressed, and the framework should thus be centred around these
12 areas:
Challenges - funding, lack of skills, competition, maintaining compliance and footprint.
Procurement opportunities - access to information, management of suppliers and training.
Supplier development - support, preferential payment terms and mentoring programmes.
Recommendations are made for further research to analyse other challenges that may exist and
attempt to quantify the success of SMMEs, specifically after participating in enterprise
development programmes.
Keywords: Enterprise development, Supplier development, SMMEs, Mining industry;
procurement.