Issue Date: 
Monday, September 21, 2015

10 Ways To Do Enterprise Development

Enterprise Development is one of the most current buzz phrases in South Africa. Everybody from Government to Large Corporates to SMME's must either perform Enterprise Development or must be the beneficiaries of Enterprise Development.

According to the Stellenbosch Business School Enterprise Development is defined as "the act of investing time and capital in helping people establish, expand or improve businesses. Enterprise development helps people to earn a living; it helps them out of poverty; and it leads to long-term economic growth for themselves, their families and their communities."

Enterprise Development is a Priority Element on the Amended B-BBEE Codes of Good Practice that came into effect on 1 May 2015. If your business does not achieve a subminimum of 40% for Enterprise Development then your business' B-BBEE Score will drop a level - in other words if your business achieved a Level 4 but you do not achieve 40% in Enterprise Development your business is going to be discounted one Level to a Level 5.

Fortunately there are many ways to comply with Enterprise development and because it is very easy to calculate how much your business have to spend (1% of Net Profit After Tax or NPAT for short), it is fairly easy to score the maximum available points on your B-BBEE Score Card. Just remember that there needs to be proper recordkeeping of all the Enterprise Development spend that you do.

Also very important to remember is that both Large Businesses as well as Qualifying Small Enterprises (QSE's) must comply with this element.
10 ways to spend Enterprise Development are:

  1. Provision of training or mentoring by suitably qualified entities or individuals to SMME's which will assist the SMME's to increase their operational or financial capacity; A Good example of this is How2Tender.com's Enterprise Development package!
  2. Investments in beneficiary entities (SMME's);
  3. Loans made to beneficiary entities;
  4. Guarantees given or security provided on behalf of beneficiaries;
  5. Direct costs incurred by a measured entity in assisting and hastening development of beneficiary entities;
  6. Contributions made to settling service costs relating to the operational or financial capacity or efficiency levels of beneficiary entities;
  7. Relaxed security requirements or absence of security requirements for beneficiary entities unable to provide security for loans; 
  8. Settlement of accounts with beneficiary entities over a shorter period of time in relation to the measured entity's normal payment period, provided the shorter     period is no longer than 15 days;
  9. Providing training or mentoring to beneficiary communities by a measured entity;
  10. Payments made by the measured entity to suitably qualified and experienced third parties to perform Enterprise Development on the measured entity's behalf.

Enterprise Development must not be confused with Supplier Development. Any money spend on Enterprise Development cannot be claimed as Supplier Development as well.

How2Tender's workshops provide much insight into the Amended B-BBEE Codes of Good Practice as well as how to use B-BBEE to your advantage when you want to tender and much more. Please visit our website for more details www.how2tender.com or email estelle@how2tender.com should you need any assistance in this regard.

Title Closing Date Tender No.
Supply, Delivery, Installation & Commission of Three Headlight Aim Testers for Vehicle Test Station for Traffic Services 2018-12-24 12:00 RFQ/HPS/2018-19/291
Provision of Driver Education (Learner and Driving Licence) 50 Persons in Ward 38 2018-12-24 12:00 RFQ/IDP/2018-19/290
Supply & Delivery of Electrical Inventory Items 2019-01-11 12:00 SCM/2019/94/ENG
Provision of Driver Education (Learner and Driving Licence) 50 Persons in Ward 08 2018-12-24 12:00 RFQ/IDP/2018-19/289
Appointment of construction of a small administration block, 2 x grade R classrooms, guard house, erection of fence, completion of the multi- purpose classroom, nutrition centre, 2 x 3 classroom blocks, conversion of 1 x 3 classroom block into hall and external works at Leboeng Primary School located in Leboeng Village in Sekhukhune District, Limpopo Province grade 7 GB and Above 2019-01-30 12:00 EDDP 184/57B
Advanced Firearm Training Programme 2018-12-28 12:00 RFQ/DHR/2018-19/297
Updating and Maintenance of BCMM`s Water Hydraulic Models and Water Demand Analysis in IMQS - Inland 2018-12-28 12:00 RFQ/DES/2018-19/296
Procurement of Professional Service Providers from the Built Environment that specializes in Architecture, Quantity Surveyors, Civil & Structural Engineers, Electrical Engineers and OHS Agents For The Planning, Design, Supervision and Closure of the Programme 9 Schools for the Limpopo Department of Education 2019-01-28 09:00 LDOE/66PSP/2018/1
Thermocycler 2018-12-21 11:00 RFQ GAU86
Jagerust Water Treatment Plant Refurbishment 2019-02-28 10:00 E/BS3691R
Supply of parts, spares and repairs of Teledyne make of ambient air quality monitoring gas analyser for lab and site network 2019-03-08 10:00 CORP 4655
Supply and delivery of electrical material and equipment for Nkomazi LM for a period of three (3) years 2019-01-31 12:00 NKO 90/2018
Provision of a functional and technical support service for Ellipse and associated bespoke systems implemented at eThekwini Electricity 2019-02-15 11:00 E.9646
Online coal quality measurement staithes incline conveyors 2019-02-12 10:00 MPGXC005157R
The maintenance and repair of portable earthing gear in Mpumalanga Operating Unit on an as and when required basis 2019-02-12 10:00 MPDX001033
Appointment of a service provider to compile a waste characterization report - Solid Waste Management 2018-12-28 11:00 FQ/SM: 97/19
To design, manufacture, supply, delivery, removal, installation and commissioning of 2 (two) spare LP heaters (1 x LPH 3 and 1 x LPH 4) for a period of 5 years 2019-02-13 10:00 MPGXC005426
Supply, delivery and installation of 2 x automated multi-deck weighbridges at Tutuka Power Station 2019-02-13 10:00 MPGXC005428
Supply and delivery of one (1) Landfill Compactor 2019-01-18 12:00 IHLM-78/12/2018-19/COMM
Provision of Short Term Insurance for the period from 01 July 2019 To 30 June 2022 2019-01-18 12:00 FIN 01/2019/20

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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