Solution focus: Enterprise and supplier development
Supporting fledgling black businesses is not only a great way to help grow your industry and uplift our nation’s economy, it’s also an effective way to improve your BBBEE score.
Enterprise and supplier development is defined as any financial or business support provided to qualifying companies. Contributions can be in the form of grants, loans, equity investments and even services rendered.
Enterprise and supplier development counts for 40 points on the Generic BBBEE Scorecard and for 30 points on the Qualifying Small Enterprise (QSE) Scorecard, which means that it can have a big impact on your total score.
So how do you set out to find an eligible enterprise or supplier to support? Firstly, the qualifying enterprise has to be financially and operationally independent and have a turnover of less than R50 million per year. It also has to have at least 51% black ownership.
LFP Training can assist your business at every stage of enterprise and supplier development.
We can offer business development support through coaching, the implementation of sustainable supplier development programmes, profiling and analysis of your supplier database, enabling procurement opportunities through collaboration and partnerships, and upskilling the knowledge and facilitating the quality of services provided by the enterprise you want to support.
Investing in your suppliers or a young enterprise in need of support can have a long-lasting positive impact on your business that goes beyond your BBBEE score. You’ll end up with a partner with a deep understanding of your needs and with a vested interest to deliver the best possible service.