Yasmine Miemiec of the University of Stellenbosch Business School discusses the findings of ‘The Enterprise Report’, published in July 2013. The report states that the injection of billions of rands into enterprise development (ED) by the South African corporate sector has not realised its potential to impact on socioeconomic transformation, nor has this commitment accomplished the intentions of the BEE Codes.
The Enterprise Development Report launched by Impact Amplifier and New York University’s Center for Global Affairs (July 2013) drew from 60 of the top 100 JSE-listed companies, which represent some of SA’s largest ED programmes.
The Impact Amplifier Report has identified three main challenges that are hampering the transformative potential of enterprise development. These are: the business skills deficiencies of small entrepreneurs; the gap between the objectives of enterprise development and their application; and the lack of measurement frameworks to monitor the impact of enterprise development programmes.
And since Enterprise and Supplier Development will count for 40 points on the new scorecard, it is no longer going to be as easy to score full points for ED. The amendments are going to force companies to invest more in their beneficiaries by linking ED to procurement. It is envisaged that this will mean that companies will be more committed to the success of their ED beneficiaries so as not to jeopardise their own supply chains.
Yasmine Miemiec, University of Stellenbosch Business School: ‘Thought Thursdays’, 2013-11-21, http://www.usb-ed.com