The debate over BBBEE and its impact has heated up again recently during President Zuma’s speech of the nation address specifically to the point relating to radical economic transformation. The week following SONA multiple news articles started debating ‘white monopolistic capital’ with prominent business men such as Christo Wiese throwing in their weight behind the debate. Many of the articles …
ESD Planning 101 and Focal Points For Entrepreneurs
Let’s cut to the chase – if you are doing BBBEE you are doing so because you want another company to buy from you. According to the new codes in order to do this you need to be an empowered supplier. The first thing in your ESD planning process is therefore becoming an empowered supplier. Being an empowered supplier requires …
Supporting your ESD Strategy through Business Linkages
Business Linkages programmes have been one of the major building blocks in many Supplier and Enterprise Development (ESD) programmes. Due to the need for localisation and black owned companies these programmes have been quite fruitful in South Africa with many of these programmes being successful for profit ventures. The goal of a business linkages programme is to create commercial linkages …
Reactive or Strategic Supplier Development
When considering Supplier Development as part of your ESD plan it is wise to consider the two different processes of supplier development as defined by Krause, Handfield and Scannel (1997). The one process is reactive in nature while the other is strategic in nature. The reactive process is what you focus on to assist companies to improve their performance. Suppliers are struggling …
Three ESD Plan Strategies for Entrepreneurial Development
According to the amended BBBEE codes all companies will now need to have an Enterprise and Supplier Development (ESD Plan) submitted (Section 4.12 of Statement 400) before the commencement of their new financial year. In essence there are three main strategies or a combination between these three strategies that an ESD Plan can focus on. The first and the most …
ESD Plan and Theory of Change for Entrepreneurs
When developing your ESD plan it is important to consider what the long term impact of your strategy will be. The average enterprise and supplier development programme takes about two years to complete. During this time you would have to test your assumptions to find out if they can be validated. If you leave the programme to run without testing your …
The ESD Process for Start-Ups and Entrepreneurs
The Enterprise and Supplier development process (ESD process) can have many iterations and needs to follow your ESD plan. The below process indicates a high level view of how this process could work within a company, when the process is reduced to it’s bare essentials.
A Systemic View of The Supplier Development Sphere
The complexities involved in your ESD Planning process can be overwhelming, even without considering the dynamics involved in the BBBEE codes of good practice. This article looks at some of the areas you would need to consider. Clearly thinking through you ESD Plan will provide you with one of the most effective means to go about communicating the necessary change within …