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Thought Thursdays

 The impact of enterprise development in South Africa

2013-11-21 00:00
Yasmine Miemiec
BEE codes
A new report published in July 2013 states that the injection of billions of rands into enterprise development (ED) by the South African corporate sector has not realised its potential to impact on socioeconomic transformation, nor has this commitment accomplished the intentions of the BEE Codes. The Enterprise Development Report launched by Impact Amplifier and New York University’s Center for Global Affairs (July 2013) drew from 60 of the top 100 JSE-listed companies, which represent some of SA’s largest ED programmes.



Enterprise development is defined as the act of investing time and capital in helping people establish, expand or improve businesses. Enterprise development helps people to earn a living; it helps them out of poverty; and it leads to long-term economic growth for themselves, their families and their communities.

Not only is enterprise development one of the elements of BBBEE, it is also accepted at a global level as an effective way to combat poverty.

The objective of enterprise development is to create sustainable businesses which grow and lead to job creation, which in turn contributes to economic growth. Enterprise development in South Africa will allow for the growth of more businesses that can provide those entering the job market with opportunities, and will ensure that the provision of these opportunities is sustainable. ED programmes should be aimed at transferring skills and wealth, and to leading to sustainable growth. For this reason, ED initiatives must be carefully thought out, and strategically approached.

It is important that enterprise development should remain a strategic priority for the country, and that companies become more involved in the provision of opportunities for local entrepreneurs. The on-going efforts of private enterprise will ensure that the country as a whole will be able to face the increasing pressures of a globalised economic environment.

The Impact Amplifier Report has identified three main challenges that are hampering the transformative potential of enterprise development. These are: the business skills deficiencies of small entrepreneurs; the gap between the objectives of enterprise development and their application; and the lack of measurement frameworks to monitor the impact of enterprise development programmes.

With the changes to the ED element proposed by the amendments to the Codes, viz. that companies should invest in their supply chains, companies are going to have to think strategically about their approaches to ED. And since Enterprise and Supplier Development will count for 40 points on the new scorecard, it is no longer going to be as easy to score full points for ED. The amendments are going to force companies to invest more in their beneficiaries by linking ED to procurement. It is envisaged that this will mean that companies will be more committed to the success of their ED beneficiaries so as not to jeopardise their own supply chains.

Corporate South Africa is being given the ideal opportunity, through the BBBEE Amendments, to build more sustainable businesses and to play a greater role in socioeconomic transformation. Around the world there is a business value which holds that investment and improvement in local economies ensures profitability and economic success for all. A focused approach to building sustainable small businesses can contribute greatly to such transformation and profitability.

Yasmine Miemiec is the BEE Institute’s Enterprise Development and Socio Economic Development facilitator. BEE Institute is a professional body that provides valuable support, services, information, and training to businesses and practitioners that have adopted the BEE scorecard and wish to implement Sustainable BEE ™.
12 Comments
Namaste plz call me 9843117100 i am also EDF from nepal
Posted by Gaurav Sapkota on 26-01-2014 4:14 PM
I am so impressed by your blog and would like to engage you more on your findings
Posted by Thabo on 02-07-2014 9:59 PM
I am happy I found this blog post. I am currently conducting research in the same area for my Masters Thesis. I would very much like to speak to you. Please could you contact me with details to contact you.

Thanks.
Posted by Riyaadh Mohamed on 04-07-2014 10:53 AM
It is very interesting article.
Please send me your mobile/office details.
Posted by wills on 04-05-2015 12:52 PM
interesting article, Thank you. As a black-owned business with fewer resources managed to convince a white established business for support of about R500.000 to purchase equipment, tools and machinery for my struggling business.

As such, I have made mention that apart from it benefiting through SED scorecard, it will also benefit through tax as well, the statement I'm no longer sure of. Please assist with clarification and recommend a reputable company that will take me through the process.

Thank you in advance.

Sincerely Yours,

Lebo Nkokoane
0720567524/0787781399
Posted by Lebo Nkokoane on 23-09-2015 9:42 PM
Hi Yasmine
I would like to discuss the opportunity in ED through the combination of venture capital (and corporate venturing), venture capital companies ( Section 12 J Sars regulation) and links to incubators and accelerators.  I am actually seeing how this could tie into ESD as part of a Deloitte initiative.  If this is if interest pleasd could you contact me via my email.  My cell is 0829920214
Posted by Sajeed Sacranie on 11-09-2016 12:03 PM
cud someone kindly advice me on how i can help establish ED systems in my country and how i can influence the status quos?
it is entirely a new concept which can help boost small businesses that will in turn lead to economic growth  and sustainability.
tx very much
.

Posted by masechaba on 13-09-2016 5:51 PM
cud someone kindly advice me on how i can help establish ED systems in my country and how i can influence the status quos?
it is entirely a new concept which can help boost small businesses that will in turn lead to economic growth  and sustainability.
tx very much
unikmarketing@yahoo.ca cell: +266 50297579
.

Posted by masechaba on 14-09-2016 9:46 AM
Hi Jasmine
In 2012 Thina Maziya of Verigreen (100% black owned) formed a programe called Supa Mama to create self employment opportunities to previously disadvantaged women through recycling, there is currently about 500 of these women in our data base and they are not a registered entity. I am considering formalising the programe etc etc. Please advice in this regard.
Posted by Faith Ntomboxolo Ntsholo on 29-12-2017 5:11 PM
Hi is the blog still active?  I would like to get in touch to obtain info for research purposes -
Posted by Risna on 10-04-2018 10:16 AM
ED is  not working in the current format as implemented  by most ED agencies. Or the impact is not sufficient enough to make  significant change in society.
We are    working  hard  to derive was to help  local small business. Is there anyone  who can give us pointers or assist in creating  linkages   to companies/institutions that  are  serous  with  ED so that we can  link them with  serous entrepreneurs.Please  review http://www.ThulamelaBusiness.co.za/reec  here we outline a concept that  can help identify and promote   rapid economic empowerment opportunities. Any  advice  is  welcome ThulamelaBusiness@gmail.com

Posted by Ntsieni on 12-04-2018 8:06 PM
Having started a construction company that employs at least 20 to 30 people, men and women. i feel that i could create more jobs for our people, pay them decent wages in order to better their living conditions. Is there a site or forum that issue tenders. our people needs, our communities needs ours to create jobs.
Posted by Moses on 16-04-2018 2:11 PM



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