Supplier Capacity, Entrepreneurial Culture and Public Procurement Participation of Women Owned Businesses in Uganda

Abstract

The purpose of the study was to ascertain the relationship between supplier capacity, entrepreneurial culture and public procurement participation of women-owned businesses. The persistent low number of bids received from women-owned businesses and failure to win contracts was a prime motivation for this study. A cross-sectional quantitative design was used in the study with a sample of 297 respondent firms, but only 249 responses were obtained. The reliability and validity of the data collection instrument were established using a Cronbach Alpha coefficient and a content validity index respectively. Data were analyzed using SPSS version 23 software with a focus on descriptive statistics, Pearson correlation and regression analyses, and Smart PLS for mediation analysis. The Pearson correlation coefficients showed a positive and statistically significant relationship between supplier capacity, entrepreneurial culture and public procurement participation of women-owned businesses. Also, a partial mediation effect of entrepreneurial culture in the relationship between supplier capacity and public procurement participation was established. Further, the regression analysis results indicated that both supplier capacity and entrepreneurial culture are statistically significant predictors of public procurement participation of women-owned businesses, accounting for 43.7%. It was therefore concluded that improved supplier capacity and good entrepreneurial culture results in public procurement participation of women-owned businesses. Recommendations were suggested including the need by the PPDA Authority in collaboration with the firms’ management to consider developing these firms’ capacities both financially and technically so as to participate easily in public procurement; need by the firms to always adhere to tax obligation and properly file their financial records, need to develop and practice good entrepreneurial culture which fosters flexibility and instills confidence in firms.