Enterprise Development is a new concept to most South African businesses. Your company is rewarded for supporting another business. In terms of BEE the beneficiary has to qualify by being more than 50% black owned or more than 25% black owned provided that the enterprise achieves a BEE Level of six or better.
Support may be given in any way so long as it is quantifiable. This can include, but is not limited to, financial support, time in the form of mentoring and discounts on products or services. Even settling an invoice early can be seen as support as cash-flow is critical to business growth.
Listed support activities that qualify include; grants, investments, loans, guarantees, credit facilities, direct costs incurred supporting beneficiaries, overhead costs incurred supporting beneficiaries, favourable credit terms, mentoring and training.
The purpose of this section of the BEE Scorecard is to encourage the establishment and growth of BEE businesses. The high business failure rates around the world indicate that running a business is one of life’s greatest challenges. Few people are born with the knowledge and people management skills to run a successful business. Most of us have learned from training and observation as to what works and what does not and yet some of the most intelligent people still fail in business.