Enterprise development
Enterprise development (ED) refers to initiatives by the public and private sector to help to develop small- or medium-sized companies, which are the driving force of underdeveloped economies. . Investing in enterprise development helps entrepreneurs to develop, scale and improve these businesses, which stimulates the economy and catalyses positive social change.
Investing in enterprise development can take many forms, from direct financial assistance and access to markets, to mentorship and skills development programmes. These investments help build resilient supply chains and contribute to the broader economic inclusion of under-served communities.
About 5% of South African CSI spend finds its way to supporting entrepreneurs and small business. Enterprise development interventions ripple through the enterprises they support contributing to job creation, strengthening local supply chains and inspiring other entrepreneurs.
understand the context of enterprise development
In South Africa, the Broad-Based Black Economic Empowerment (B-BBEE) codes of good practice support and promote small businesses, and corporates are required to invest at least 3% of Net Profit After Tax towards the development of transformed businesses. Enterprise development (ED) is one of the priority elements of the B-BBEE Scorecard, along with supplier development (SD). ED contributions can be financial or non-financial – for example, corporates could assist entrepreneurs with training and mentorship, legal support, HR support, customer management, counselling, and assistance with a business strategy.
Potential models of intervention
Small to medium enterprises (SMEs) are powerful tools to create jobs and lift people out of poverty. Investing in enterprise development in South Africa helps to stimulate the growth of black-owned SMEs and draw them into the broader economy, usually through supply chains. There are numerous ways to assist small businesses, including training and mentorship, providing access to markets, funding social programmes, and helping companies to promote their goods and services.
Learn from RESEARCH in enterprise development
What is the evidence for investing in enterprise development in Africa? Explore research, policies, insights and statistics to help inform your investment decisions.
