The Enterprise and Supplier Development Element, as set out in Code Series 400 of the 2013 B-BEE Codes of Good Practice, measures the extent to which Enterprises buy goods and services from suppliers with strong B-BBEE procurement recognition levels who are Beneficiary Suppliers, and the extent to which Enterprises carry out initiatives intended to assist and accelerate the development and sustainability of black owned enterprises.
Measured Entities are encouraged to align their Enterprise Development initiatives with their supply chain requirements thereby linking Enterprise and Supplier Development with Preferential Procurement.
It is strongly suggested that each 100% black owned business provided with procurement opportunities within a Measured Entity’s supply chain be supported in an Enterprise and Supplier Development Programme with SDF Commodities as Supplier Manager and Incubator, as this:
- Significantly mitigates the perceived risks in procuring from small businesses;
- Ensures all Enterprise and Supplier Development requirements in terms of the amendments to the BEE Codes of Good Practice are complied with; and
- Enables enhanced procurement scorecard benefits.
If the Measured Entity procured from a 100% black owned EME or QSE which was a first-time supplier or provided with a minimum 3-year contract, it could claim 135% x 120% = 162% of the spend on the ESD Element of the BBBEE Scorecard.
The success of Enterprise and Supplier Development (ESD) lies in nurturing, supporting and developing black owned businesses and entrepreneurs. Without assistance, as many as 70% of small, medium and micro enterprises (SMME’s) in South Africa fail in their first two years of existence.
To ensure sustainability, these businesses need the support and guidance of a knowledgeable, established and well-connected ESD organization such as SDF Commodities and meaningful access to procurement opportunities.
Collaboration has been key to our success. By partnering with the private sector and higher education and training sector the enterprise and supplier development can be a transformative tool to build a resilient South African economy that creates a sustainable economy for all.
Our Service Level Agreement outlines the opportunities in Enterprise and Supplier development afforded by the Amended BBBEE Codes of Good Practice and how as a black entrepreneur, mentor, donor or procurement professional you can benefit by partnering with SDF Commodities.
Our Service Level Agreement focuses on promoting entrepreneurships as a route to achieving economic freedom and providing 100% black owned businesses with the support they need to become successful and sustainable. SDF Commodities incubate Entrepreneurs for a 3-year period, in which they need to prove growth and sustainability.
THIS IS ACHIEVED BY:
- Promoting entrepreneurship as a desirable career choice by profiling through the Incubator Programme for Entrepreneurship by partnering with False Bay TVET College, Westlake.
- Nurturing qualifying 100% black owned businesses by providing incubators with office infrastructure, professional services and a mentorship and training programme at highly subsidized rates
- Creating employment opportunities by recruiting and support those businesses which have the potential to each generate at least four jobs;
- Enabling procurement opportunities for emerging 100% black owned businesses through our Procurement Database
- Assisting SDF Commodities through ESD contributions and funding through third-party service providers
- Growing the knowledge and quality of our service offering by accurately measuring, monitoring and reporting on all we do.
- In sourcing businesses for the provision of procurement opportunities, the majority of SDF Commodities incubator Entrepreneurships are EMEs (turnover less than R10 million per annum) and would be Designated Groups for scorecard purposes.
- SDF Commodities assists EME’s and QSE’s Enterprises in meeting the requirements to become a Designated Supplier through the mentoring programme in its incubators. All mentoring activities are recorded and accumulated as evidence of the 12 days required to be spent in assisting Black EME or QSE beneficiaries to increase their operational or financial capacity. Another initiative for ESD as per Beneficiary Matrix.
We are a Supplier Development Facilitator managing Supplier procurement, partnering with a Technical and Vocational Education and Training College (TVET), developing incubation organizations. Our goal is to increase the levels of black entrepreneurship and to equip black entrepreneurs with the skills and training to make their 100% black owned business an integral of the South African economy. Ultimately, SDF Commodities aims to increase the rate of economic participation and innovation in South Africa through the creation of 100% black owned small businesses that will create local jobs and add value to the economy.
SDF Commodities has an online Preferential Procurement Database which connects 100% black owned SMME’s with businesses. This provides procurement professionals with an easily navigable online tool that searches, filters and locates approved suppliers on our database. SDF Commodities also provides meaningful Enterprise and Supplier Development assistance to our Entrepreneurs via learning, mentoring, financing platforms and sustainability.