ENTERPRISE AND SUPPLIER DEVELOPMENT
Enterprise and Supplier Development (ESD) focuses on supporting, strengthening, and integrating black-owned businesses into the mainstream economy, improving their capacity, competitiveness, and access to markets while contributing to long-term economic growth.
At BBBEE Wise, we work closely with you to design and implement an effective enterprise and supplier development programme that aligns with the B-BBEE Codes of Good Practice and your business strategy. Our experts identify the exact criteria applicable to your entity, calculate your targets for the measured period, ensure contributions are made as required, and highlight any shortfalls before assisting with practical solutions and implementation.
Building a Compliant ESD Strategy
Our role goes beyond advice. We partner with you to make your enterprise and supplier development B-BBEE strategy a success. Once potential beneficiaries are identified, our team conducts detailed due diligence to ensure they meet the qualification criteria set out in the Codes and that they are compatible with your business. This ensures that your support goes to worthy recipients who will benefit directly from your contributions, driving both impact and compliance.
Enterprise and Supplier Development is fundamentally a business-to-business initiative. Its purpose is to make contributions, whether monetary or non-monetary, that uplift the operational and financial status of qualifying black-owned enterprises. These contributions support entrepreneurs and small business owners, typically those operating as 51% black-owned Exempt Micro Enterprises (EMEs) or Qualifying Small Enterprises (QSEs), and form part of South Africa’s broader transformation objective.
Supplier Development and Preferential Procurement
Supplier development focuses on strengthening and growing the businesses you already work with. By providing targeted support, such as funding, mentorship, training, or infrastructure, you help existing suppliers expand their capabilities and become more competitive.
Preferential procurement complements this by rewarding your business for sourcing goods and services from black-owned suppliers. Together, these elements build a stronger supply chain, enhance supplier diversity, and boost your overall enterprise and supplier development scorecard performance.
Enterprise and Supplier Development and Tenders
A robust enterprise and supplier development programme can significantly improve your chances of success in enterprise and supplier development tenders. Many procurement opportunities prioritise businesses that demonstrate a genuine commitment to supporting black-owned enterprises, making this a strategic advantage as well as a compliance requirement.
It is also essential to meet the sub-minimum targets in each of the three sub-categories: Enterprise Development, Supplier Development, and Preferential Procurement, to avoid a discounted B-BBEE level. Achieving these targets not only improves your compliance status but also strengthens your reputation as a company committed to transformation and inclusive growth.
At BBBEE Wise, we believe enterprise and supplier development should create more than points on a scorecard; it should create opportunities, sustainable businesses, and real economic impact. With our expert guidance, due diligence, and hands-on support, your business can implement an impactful enterprise and supplier development strategy that meets compliance requirements and contributes to lasting transformation.
ENTERPRISE & SUPPLIER FAQS
What is enterprise and supplier development?
Enterprise and Supplier Development (ESD) is a key element of the B-BBEE scorecard focused on growing and supporting black-owned businesses. It involves providing financial or non-financial support to qualifying enterprises and developing existing black-owned suppliers to strengthen their capacity, competitiveness, and participation in the economy. ESD helps create sustainable businesses, strengthens supply chains, and contributes to South Africa’s broader transformation goals.
What is enterprise development?
Enterprise development is the support provided to 51% black-owned Exempt Micro Enterprises (EMEs) or Qualifying Small Enterprises (QSEs) to help them grow and become more sustainable. This support can be financial or non-financial, such as funding, mentorship, training, or access to markets. The aim is to strengthen the operational and financial capacity of small black-owned businesses and integrate them into the broader economy, contributing to meaningful transformation.
What is supplier development?
Supplier development focuses on building the capacity and competitiveness of existing black-owned suppliers within your supply chain. By investing in training, funding, technology, or infrastructure, businesses help these suppliers expand their capabilities and deliver more effectively. This not only improves supply chain performance but also earns recognition on the B-BBEE scorecard as part of the Enterprise and Supplier Development element.
