Since making the move from consulting in a purely Innovation driven environment, I have become increasingly interested in the number of businesses in the QSE range (5m - 35m turnover) who have a less than effective BBBEE scorecard.
My interest stems largely from the fact that Code 600 of the Codes of Good Practice is in many cases largely ignored. Possibly this isn't too surprising - it is one of the least understood codes; but it provides for 15 points on the scorecard, is a tax deductible expense, and requires no sweeping change and no expensive resource dedication from the sponsor.
Various Enterprise development agencies exist to assist with the process, which simplifed, takes the following form:
Advantages for sponsors
- ED agency sources the beneficiary, provides education and mentorship, and develops the reports you need.
- ED Agency provides monthly development updates – sponsor can track the benefit of spend directly.
- Online facilities generally exist to allow sponsors to draw ad hoc reports where required.
Compared with other forms of empowerment, such as bringing in a black shareholder, enterprise development is relatively inexpensive. It also has the advantage of building the capacity of smaller suppliers, giving them the ability to do larger deals and improving their profitability.
Enterprise development should not be confused with procurement. Buying goods from empowered companies is a continuous activity, while enterprise development can be a one-off event.
(Source unknown - but I did get it from somewhere!)
So why am I so concerned about ED?
Consulting in the ED space, I've seen the masive benefits derived by the business owners. If we're really serious about building a sustainable 'secondary' economy, ED is critical...I wish more people would take the time to consider the benefits...and the long-term outcomes.
For more info, contact me!