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Job creation and poverty
alleviation, as previously outlined in this article, is linked to
technology and the development and promotion of small scale enterprises.
Small enterprises usually regard market constraints and the inability to
sell their products and services as one of the most serious obstacles to
the starting of business and growth beyond mere subsistence level. Small
scale enterprises can participate in procurement process in one of two
ways. They can either contract directly with a body or participate as a
subcontractor (supplier or service provider to a prime contractor in the
delivery chain).
Unbundling of bigger contract by the companies can make participation of
small scale enterprises and also help large compaies to procure works in
the smallest practicable quantities, The smaller compaies also participate
by forming joint venture formation with large businesses and /or small
scale enterprises and by providing third party management support to
enterprises which are not capable of operating as prime contractors
Thus targeting strategies by large companies require them to “unpack”
their contracts into smaller contracts and to procure the services of
small scale enterprises to perform such contracts and to administer them.
This can be done by one or more of the following ways for the companies
that are targeted enterprises: (a) subcontract portion of the contract;
(b) obtain manufactured articles from manufacturers; (c) obtain supplies
and materials from suppliers; or (d)engage professional, technical or
managerial experts.
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