Supplier and Enterprise Development in a nutshell

The amended BBBEE codes of good practice reveal that more points can be earned through enterprise development and supplier development. Companies can score 40 points on the BBBEE scorecard for enterprise and supplier development and 30 points on qualifying small enterprise (QSE). The sub sections of ESD are preferential procurement, supplier development and enterprise development which makes it easier for points to be scored as businesses can choose which element of the subsection they think would best benefit their company taking into consideration the available resources.

Preferential procurement measures how a company purchases goods from suppliers who are BEE compliant as it is a system where government tenders are awarded based on a selection system that gives preference to disadvantaged individuals. While supplier development assists in growing suppliers from your database, enterprise development assists businesses that are not on a database of a business.

Enterprise and supplier development is about growing existing businesses, new and small businesses with more than 51% black owners and a turnover that is less than 50 million per year. In order to earn points for SD you need to spend 2% of your net profit after tax per annum on supplier development and 1% of your net profit after tax on enterprise development. You can earn your ESD points by supplying goods to the Sparrow Schools including printing service, computers for the IT class, stationery and other relevant resources.

Source from SEESA, BEESA, SA-tenders

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