What is Enterprise Development?
Enterprise development is a business to black business transaction, where the aim is to provide contributions to assist in the operations, financials of and development towards business sustainability
In the context of enterprise development, there are two definitions of a black business.
- The first has a positive multiplier of 1.25 to the contributions and is defined as a 50% black business that is either an Exempt Micro Enterprise or a Qualifying Small Enterprise
- The second is defined as a 50% black business that is Generic, or a 25% black owned business that has a valid BEE certificate between Level 1 and 6.
What are Enterprise Development contributions?
Enterprise Development contributions take many forms. It is not the value of a contract given to a black business but rather the contributions towards technical help, the transfer of knowledge and skills, operating cash flow, loans and/or investments. The Codes of Good Practice Enterprise Development Matrix, provides the framework to these contributions. All examples of Enterprise Development contributions should be read in conjunction with the Enterprise Development Matrix as each contribution type carries a specific percentage weighting.
Enterprise Development Agreements.
All enterprise development claims for BEE verification require valid supporting documentation.
The starting point is an Enterprise Development Agreement where there is a clear understanding between the company providing the contributions and the black business receiving them.
LFP Enterprise and Supplier Development Services.
- Business Development support through coaching,
- Implementation of sustainable supplier development programmes,
- Profiling and analysis of your supplier database,
- Enabling procurement opportunities for EME’s through collaboration and partnerships,
- Upskilling the knowledge of EME’s and facilitating the quality of services provided.