The tender system has been around for centuries. From France to England, the tendering process has been used by governments and companies to outsource services.
In South Africa, tenderpreneurship rose to popularity post-apartheid. The ANC government has used the procurement process as a strategy to empower black people.
Just in this year’s national budget, there was R500bn set aside for government bill of goods and services as well as the R900bn infrastructure budget over the medium term framework. This is goods, services, and infrastructure development work which would likely be given out through a tender process.
With so much money available through tenders, is being tenderpreneur a valid career path?
These are the things you need to consider before filling in that first tender bid form:
A building block
Tenders can be used as a stepping stone to grow your business. The money you make from winning a tender will give you capital to grow your small business.
“Tenderpreneurship is a good new business concept when it’s not being abused by individuals in the business sector … I view it as a system that gives any small business man a giant leap ahead into realising his dreams without going through the red-tape of loan financing from the bank, ” says entrepreneur and owner and of Mzansi Mobile Fridges, Ntokozo Biyela.
Through the tender, you will be able to empower and employ people. Tenders don’t just benefit the main beneficiary, but also have a positive social impact in communities
The government procurement process has been marred by widespread corruption. In 2016, the deputy Public Protector, Kevin Malunga, estimated that 60% of all tenders were contaminated with some form of corrupt activity.
Tenders offer a lucrative source of income. As a result, the tendering environment is an incredibly competitive space and you are not guaranteed to win every tender you bid for.
In isolation, tenderpreneurship is not a sustainable career path, as income is not guaranteed but it can be used as a crucial building block for a small business.