Authors : Sheperd Sikhosana; Humphrey Lephethe Motsepe

Volume/Issue : Volume 10 - 2025, Issue 7 - July

Google Scholar : https://tinyurl.com/568asyzp

DOI : https://doi.org/10.38124/ijisrt/25jul486

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Abstract : The effects of preferential procurement laws on the growth and viability of young start-up businesses in South Africa's Mpumalanga Province is examined critically in this essay. A key component of post-apartheid economic transformation policy has been preferential procurement, a strategic state intervention based on inclusivity and redress. This study specifically looks at how legislative intent and practical application of these procurement frameworks intersect, with an emphasis on how they affect start-ups led by young people. The study uses a qualitative research paradigm based on a Systematic Literature Review (SLR) methodology and consults a large body of government reports, policy documents, and peer-reviewed scholarly articles published between 1994 and 2025. A thorough and thoughtful synthesis of current academic discourse and pertinent empirical trends is made possible by the SLR approach to procurement and youth entrepreneurship. Using the Atlas.ti software, thematic analysis was carried out to help with the depth and rigor of data interpretation. This allowed for the extraction of conceptual categories and recurring patterns from the chosen literature. Although preferential procurement has created beneficial pathways for youth economic inclusion, especially in terms of better access to public tenders and contractual opportunities, its actual effectiveness is still limited by a number of systemic barriers, according to key thematic insights. Administrative complexity, opaque procurement procedures, a lack of institutional capacity at the municipal level, and long-standing gatekeeping practices that disenfranchise young entrepreneurs who are truly deserving are some of these. The analysis also reveals a lack of trust among young people in public procurement systems, which is made worse by instances of political favouritism and unequal empowerment target enforcement. The study makes the case that the transformative potential of preferential procurement may remain mainly symbolic unless these issues are resolved by intentional policy improvement and operational accountability. Therefore, recommendations support a redesigned policy framework that is based on streamlined application procedures, strong oversight procedures, and formalized mentorship programs and is suited to the developmental requirements of young start- ups. Such interventions are thought to be necessary if procurement is to serve as a tool for inclusive growth and sustainable entrepreneurship among South Africa's youth, especially in provinces with limited resources like Mpumalanga.

Keywords : Preferential Procurement, Youth Start-Ups, Mpumalanga, Entrepreneurship Policy, Economic Empowerment.

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