Why Enterprise Development is important to your business.

Why Enterprise Development is important to your business.

Aside from the fact that Enterprise and Supplier Development (ESD) now makes up the largest single allocation on the BEE scorecard (40 points), a carefully strategized E&SD programme can also benefit your own business. In addition, a well-run E&SD programme is probably the most meaningful way to grow a more diverse and sustainable economic landscape for the country by supporting the growth of new businesses.

The E&SD strategy that you choose can have very different returns for your business. Whether you see it as an opportunity to develop your demand chain (e.g. by giving support to distributors and on-sellers of your products), improve your supply chain (helping to improve efficiencies in your supply) or if you merely see it as an added burden of doing business in South Africa, the new codes certainly compel companies to take a more strategic outlook on their BEE strategy.

Under the new BEE codes, enterprise development has merged with preferential procurement in a move which aims to see ED efforts being focussed towards companies which can (and will) fall within your supply chain. The focus on Supplier Development makes a lot of sense because it supports the idea that your investment (whether financial, time, skills or other resources) can improve your own business by improving the service levels and alignment of your suppliers.

Better suppliers equates to improved operational efficiencies and lower business risk for you!

While many companies have, over the years, aligned their ED programmes exclusively for ED, LEAP has, for the past 5 years, run its programmes along the same principles that the new codes are trying to foster; offering genuine and meaningful support that focuses on developing the beneficiaries in their own right.

LEAP is able to assist you with getting the most out of your ESD strategy by:

  • Mapping out the new codes and the changes they will require of your business

  • Assessing your current procurement and ED strategies through:

    • Collection of BEE certificates from your suppliers

    • Analysing your PP score and identifying areas in which your company may be falling short

    • Identifying any existing SD beneficiaries which you may already be working with

    • Make recommendations on ‘other areas’ that you would like to see improvements

    • Implementation and running of a measurable and meaningful ESD programme which is tailored to both the needs of your business and that of your beneficiary.

For E&SD advice call LEAP’s ED specialist Owen: 011 449 7074

 

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