Examining Selected Business Factors Determining Access to Black Business Supplier Development Programme Funding in South Africa

Abstract

This paper examines selected business factors determining access to Black Business Supplier Development Programme (BBSDP) funding in South Africa over the financial period 2011/12 to 2014/15. Raw data was sourced from the BBSDP database. Approved amount (AM) was the dependent variable while turnover amount prior to application (TA), number of employees in the previous year (NE), and distinct amounts required for tools and machinery (TM), business development (BD), and training (TR) were used as covariates in the model. Weighted estimation regression through the origin in Statistical Package for the Social Sciences (SPSS) statistical program was applied for statistical analysis. Estimated results indicate that turnover prior to application, and the distinct amounts required for tools and machinery, business development, and training purposes, all had statistically significant positive effects on the amounts approved for firms during the period under review. In conclusion, the paper recommends that Small and Medium Enterprises (SMEs) need to focus on investing in tools and machineryand business development as well as increasing their turnover levels in order to improveaccess to government funding.