WAYS IN WHICH CORPORATES CAN ENGAGE
The challenge of raising sustainable SMMEs in South Africa is a formidable one, which requires many different forms of partnership for it to be successful.
Corporates are seen as key role players in this landscape and could be involved with the CfE in a number of ways.
ENTERPRISE DEVELOPMENT (ED)
Enterprise development is an activity that assists or accelerates the development, sustainability and ultimately financial independence of an Enterprise Development Beneficiary and is evidenced in the form of an Enterprise Development Contribution.
This is commonly accomplished through the expansion of the beneficiarys financial and/or operational capacity.
Enterprise development contributions are contributions actually initiated for enterprise development purposes and may be monetary or non-monetary and recoverable or non-recoverable.
SUPPLIER DEVELOPMENT (SD)
The aim of SD is to increase the competitiveness, capacity and capability of the South African supply base where there are comparative advantages and potential competitive advantages of local supply.
This can be achieved through skills transfer, increasing the local content of items procured, as well as building new capability in the local supplier base. In addition, SD has its roots grounded firmly around the transformation of South Africa and the empowerment of previously disadvantaged individuals and enterprises.
The CFE/RI has been exploring the field of Social, Enterprise and Supplier Development over the past 2 years.
Investment in excess of R800 000 has come from 4-5 businesses which has translated into significant benefit to the beneficiaries on our program. In most cases, this investment is focussed on enterprise development. Four of our beneficiaries have also started with limited supply chain input.