The-Accountant-Sep-Oct-2017-Final

Public Policy
OBSTACLES ENCOUNTERED
BY TENDERPRENEURS
By Joel Kamotho Mwaniki
Kenya recently gazzetted
the Public procurement
and disposal Act. It is a
legislation that regulates how
government procurement is
done. It is not just for government but also
for public entities, government agencies
and organizations where government has
significant control and interest. These
dynamics have given birth to tender
prenuers. A tender preneur is a natural or
artificial person whose interest in business
solely relies on government procurement
through a tendering process.
This kind of venture has majorly
been promoted by the 30% clause for
government procurement to be given to
youths, women and persons living with
disabilities. Government is the largest
single consumer in any economy and it
can’t be ignored. They have been lured in
through the assurance of a policy that was
well thought out regarding how to create
employment through empowering special
groups and the marginalized.
A youth is defined as an individual
who is between 18 to 35 years of age
irrespective of the gender. Apart from a
legislation that protects the interest of the
youth in doing business with government,
a list of requirements has to be met for
one to get Agpo certification. This enables
them to get the reservation of provision of
goods and services.
The requirements are:
• One has to have a registered business
name or have the business registered as
partnership or limited company.
• For partnership the youths’ partner
must have a controlling interest in it
having more than 70 percent and must
be a signatory of the bank account of that
business.
• For companies registered under women,
the leadership should be dominated by
women and have a majority in terms of
shareholding.
• Persons living with disabilities must
have registered with the Association of
Persons Living with Disabilities of Kenya
(APDK).
In the course of their endeavors they
encounter a myriad of challenges which
are slowing them down. Others have
quit altogether. The benefits which would
accrue to the targeted population through
legislation has yet to be enjoyed, instead
they feel frustrated.
The challenges these entities face Include:-
1. Lack of adequate managerial skills
2. Lack of adequate capital
3. Compliance issues
4. Cash flow problems
5. Lack of experience
6. Stringent conditions to meet
7. Policy related issues
8. Lack of information
9. Corruption
We shall discuss these issues one after the
other;
Lack of adequate managerial and
business skills; in the current situation
tender preneurs are mostly first time
business men and women, some of whom
have not been involved in other business
operations. For a business to stay afloat
and be making profit; decision making is
crucial based on facts and alternatives. And
again it involves such issues as planning,
organizing, coordinating, controlling and
review. Other skills required are personal
and analytical, communication skills is
key within and outside the organization.
Record keeping and data analysis is
critical in business operation. These basic
skills should be included in the curriculum
and not in higher education levels; but at a
lower level than college.
Lack of adequate capital; is another
challenge faced by tender preneurs.
Mostly they rely on their personal savings,
contribution from friends and family.
Their weakness in capital base makes them
not bag in sizeable tenders in their areas
of interest. They are mostly given small
orders that are not economically viable.
8 september - october 2017