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Background to Enterprise Development (ED) and Supplier Development (SD)

On the 11th of October 2013, the Government through its Department of Trade and Industry issued Notice 1019 of 2013 wherein it detailed the Broad-Based Black Economic Empowerment Act (53/2003) spelling out the Codes of Good Practice. The use of these codes becomes compulsory on the 1st of May 2015.
The government came up with a generic scorecard for enterprises which requires business entities to comply with B-BBEE initiatives based on five elements which are:


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This measures the extent to which entities buy goods and services from Empowering Suppliers with strong B-BBEE recognition levels. This element also measures the extent to which enterprises carry out supplier and enterprise development initiatives intended to assist and accelerate the growth and sustainability of black enterprises (44 pts)
This measures the effective ownership of entities by Black people (25 pts)
This measures the effective control of entities by Black people (19 pts)
This measures the extent to which employers carry out initiatives designed to develop the competencies of Black employees and Black people internally and externally (25 pts)
This measures the extent to which entities carry out initiatives that contribute to Socio-Economic Development or Sector Specific developments that promote economic access for Black people (5 pts)

Enterprises are scored on how compliant they are with government requirements on the each of the above elements up to a total possible score of 118. The Supplier and Enterprise Development element carries the most weight contributing 44 points representing 37% of the total possible score.
We at McGeralds Entrepreneurship Centre offer the facilitation service for Enterprise Development (ED) and Supplier Development (SD) and ensure your enterprise achieves the maximum possible score on this crucial element.


  • Facilitation of Enterprise and Supplier Development spend for qualifying enterprises.
  • Developing Enterprise and Supplier Development strategies for qualifying enterprises.
  • SMME mentoring services.
  • Black Economic Empowerment through enterprise development strategies and support to SMMEs.
  • Enterprise strategies that create win-win partnerships going beyond the compliance requirement thereby improving supply chain and client base.
  • Enterprise collaboration strategies that develop industry best practices.
  • Enterprise strategies with built in impact assessment services that evaluate real socio-economic changes resulting from ED and SD activities.

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We strive to help build an inclusive economy where the previously marginalised participate in the mainstream economy hence contributing to wealth creation and employment creation.  We act as a bridge that enables you to fulfil your mandate for corporate social investment obligations in line with the government statute to support black owned enterprises, while at the same time developing your supply chains.

By partnering with McGeralds Entrepreneurship Centre, you receive the following among other benefits:

  1. A platform to invest in viable SMMEs and earn Enterprise and Supplier Development points (High Impact Corporate Social Investment)
  2. Enhancement of supply chain – Mentorship derived from McGeralds Entrepreneurship Centre will enable the beneficiary entities to operate efficiently and therefore become reliable suppliers for sponsor organisations. Our focus is to effectively enable the suppliers to become reliable industry partners in their value networks.
  3. You play a positive role in shaping a more inclusive economy. A successful company takes pride in sustainable corporate social investment. We will help you realise your ESD objectives while focusing on your core activities as a business.

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