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Supporting your ESD Strategy through Business Linkages

ESD Planning and Process Guides Leave a Comment

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 …

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South African Business Incubation Programmes

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The best definition of a business incubator we have found is that of Allen and Rahmen (1985) which states:  “The universal purpose of a business incubator is to increase the chances of a firm surviving its formative years, but the business incubator also adds value by maximizing the firms’ growth potential.”  The South African marketplace has a significant Business Incubation market.  Much of this …

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Visual Management as a Tool for Enterprises

Lean Start-Up Guides Leave a Comment

Some Enterprise Development practitioners in South Africa have criticised the idea of using a business plan. Mostly the reason for this is that a business plan is developed at the start of a business and then left and never again looked at.  It cannot be denied that any small business that wants to be successful has to plan.  The criticism regarding …

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Supplier Development and Quality Assurance

Lean Enterprise and Supplier Development Guides 1 Comment

The original intention of the BBBEE codes was to link Enterprise Development to Preferential Procurement.  From a procurement point of view there was and is however a lot of risk associated with procuring from companies that require development.  By the time a procurement officer looks at any company in the stages of commercial adjudication all the boxes need to be …

Job Creation as part of Supplier Development

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During a recent tender to a government institution I was faced with the question of job creation as part of supplier development.  The tender was asking me how many new jobs our company would be creating if I were to win the tender.  This made me think of the way in which companies account for job creation. Based on the requirements …

ESD Beneficiary Matrix for Entrepreneurial Development

BBBEE Codes Compliance Guides Leave a Comment

The ESD Beneficiary Matrix It represents all the different areas that you are allowed to claim as a company for your 2% NPAT under Supplier Development or your 1% NPAT under Enterprise Development.  The ESD Beneficiary Matrix should be used as part of your planning process for your ESD Plan. The Beneficiary Matrix indicates Monetary and Non-Monetary as well as …

The DNA of Lean Supplier Development for Entrepreneurs

Lean Enterprise and Supplier Development Guides Leave a Comment

With the shift in Enterprise development to Enterprise and Supplier Development many companies will now start considering Lean Supplier Development as a methodology to develop their suppliers.  See our post on Supplier Development in South Africa for more information on this. The Lean or continuous improvement movement is built around a major component which is the Plan-Do-Check-Adjust (PDCA) cycle.  This cycle has at …

Reactive or Strategic Supplier

Reactive or Strategic Supplier Development

ESD Planning Guides Leave a Comment

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 …

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Three ESD Plan Strategies for Entrepreneurial Development

ESD Planning Guides Leave a Comment

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 …

Targeted Procurement Strategies (Strategic)

Preferential Procurement Guides Leave a Comment

Previously we have considered the tactical and the leveraged targeted procurement strategies.  During this intervention we will be considering the targeted procurement interventions in the strategic arena.  In the strategic space there are two areas to consider.  The one is the Strategic Critical which we will discuss later and the other is the bottleneck domain. Bottleneck The Bottleneck arena has some …

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Conversations with June Lavelle (Part 2) – Business Incubator Sustainability

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This is the second part in a series on relating to Business Incubator sustainability (Click here for part one).  During this part the author June Lavelle explains what is meant by incubator sustainability as well as discusses  the Development phase and the Mature Incubation Phase in more detail. b)   Development Phase This period contains a number of different phases of development …

Tactical Preferential Procurement Strategies

Tactical Targeted Procurement Strategies

Preferential Procurement Guides Leave a Comment

The Amended BBBEE codes have made the linkage between Enterprise Development and Preferential Procurement clear with the introduction of Supplier Development.  In this article we will consider the various targeted procurement interventions that could be used to assist in the growth or entry of QSE/EME’s in the supply chain.  For the purposes of this article we will therefore use targeted …

Leveraged Preferential Procurement Strategies

Leveraged Targeted Procurement Strategies

Preferential Procurement Guides Leave a Comment

In our previous article we have considered the targeted procurement strategies in the tactical area of preferential procurement.  This requires a specific focus on various targeted procurement interventions for Black or Black Woman Owned QSE/EMEs.  Your Preferential Procurement strategy will be one of the three strategies that you will need to consider as part of your ESD plan.  In this post we will consider …

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Conversations with June Lavelle – Business Incubator Sustainability (Part 1)

Business Incubation Guides, Sustainability Guides Leave a Comment

This is the first of two articles business incubator sustainability. The work in this series has been authored by June Lavelle.  During coming months we will have further discussions with Ms. Lavelle relating to various aspects of business incubation. Ms. Lavelle was among the first to spearhead the small business incubator concept: she developed the business plan, raised $1.7 million …

Social Sustainability Conversations for Enterprises

Change Management Tips, Supplier Development Posts, Sustainability Guides Leave a Comment

With the change in the codes from Enterprise to Supplier Development the Supply Department now becomes much more engaged around issues such as social sustainability. In a recent blog by Gregory Unruh from MIT Sloan (  he discuses how sustainability thinking can be introduced to organisations through selective conversations.  In doing this however sustainability practitioners need to understand what the major …