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What is Enterprise Development?
Enterprise development is a business to black business transaction, where the aim is to provide contributions to assist in the operating, financial and development towards business sustainability. In the context of enterprise development, there are two definitions of a black business. The first has a positive multiplier of 1.25 to the contributions and is defined as a 50% black business that is either an Exempt Micro Enterprise or a Qualifying Small Enterprise. The second is defined as a 50% black business that is Generic, or a 25% black owned business that has a valid BEE certificate between Level 1 and 6.
What are Enterprise Development contributions?
Enterprise Development contributions take many forms. This is not the value of a contract given to a black business but the contributions towards technical help, transfer of knowledge and skills, operating cash flow, loans and/or investments. The Codes of Good Practice Enterprise Development Matrix provides the framework to these contributions
Examples of Enterprise Development
All examples should be read in conjunction with the Enterprise Development Matrix as each contribution type carries a specific percentage weighting.
Enterprise Development Agreements
All enterprise development claims for BEE verification require valid supporting documentation. The start point is an Enterprise Development Agreement where there is a clear understanding between the company providing the contributions and the black business receiving.

REASONS FOR ENTERPRISE DEVELOPMENT


  • Enterprise Development is one of the most current buzz phrases in South Africa. Everybody from Government to Large Corporates to SMME's must either perform Enterprise Development or must be the beneficiaries of Enterprise Development.
  • According to the Stellenbosch Business School Enterprise Development is defined as "the act of investing time and capital in helping people establish, expand or improve businesses. Enterprise development helps people to earn a living; it helps them out of poverty; and it leads to long-term economic growth for themselves, their families and their communities."
  • Enterprise Development is a Priority Element on the Amended B-BBEE Codes of Good Practice that came into effect on 1 May 2015. If your business does not achieve a subminimum of 40% for Enterprise Development then your business' B-BBEE Score will drop a level - in other words if your business achieved a Level 4 but you do not achieve 40% in Enterprise Development your business is going to be discounted one Level to a Level 5.
  • Fortunately, there are many ways to comply with Enterprise development and because it is very easy to calculate how much your business have to spend (1% of Net Profit After Tax or NPAT for short), it is fairly easy to score the maximum available points on your

  • B-BBEE Score Card. Just remember that there needs to be proper recordkeeping of all the Enterprise Development spend that you do.
  • Also, very important to remember is that both Large Businesses as well as Qualifying Small Enterprises (QSE's) must comply with this element.


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    GOVERNMENT

    Benir Holdings inspections will ensure that work is done according to all regulations and standards. Benir Holdings will strive to integrate with the customer’s culture, values and rules and regulations to ensure safe and productive work environment. Benir Holdings is fully empowered, and has a real participative structure funded by the investing shareholders for the employees of the company.

    BUSINESS

    Stellenbosch Business School defines Enterprise Development as "the act of investing time and capital in helping people establish, expand or improve businesses. Enterprise development helps people to earn a living; it helps them out of poverty; and it leads to long-term economic growth for themselves, their families and their communities." We help you get there

    LOCAL LABOUR

    When pursuing new opportunities in any area, to where possible involve, empower and transfer skills to local entrepreneurs, preferably from Previously Disadvantaged Groups or Individuals. This will ensure and generate a substantial income for the community and promote employment within the local community of the specific contract.

    WHY PARTICIPATE



    • Enterprise development involves the growing of small and medium-sized black businesses through the provision of finance and support, assisting in their business development and sustainability.

    • In creating a programme for enterprise development, budding entrepreneurs and all they hire will earn a living, which in turn uplifts their quality of life.

    • These programmes could lead to long term economic growth for entrepreneurs, their families and friends and their entire communities.

    • The enterprise development programme is just one of the elements of BB-BEE and is considered an effective way to combat poverty across the globe.

    • Enterprise development involves the growing of small and medium-sized black businesses through the provision of finance and support, assisting in their business development and sustainability.

    • In creating a programme for enterprise development, budding entrepreneurs and all they hire will earn a living, which in turn uplifts their quality of life.

    • These programmes could lead to long term economic growth for entrepreneurs, their families and friends and their entire communities.

    • The enterprise development programme is just one of the elements of BB-BEE and is considered an effective way to combat poverty across the globe.


    IT'S ABOUT LEGISLATION
    This we do in collabouration with the different departments in the in the different levels of government. In doing so, we assist the enterprises to conclude projects in a cost-effective manner and on time thus assist them growing their enterprises and establish a footprint in the industry whereas they could not have done so or taking longer doing so. This is testimony of our active participation in inclusive growth and our social distribution towards or local communities.
    IT'S ABOUT DEVELOPMENT
    Enterprise development involves the growing of small and medium-sized black businesses through the provision of finance and support, assisting in their business development and sustainability. In creating a programme for enterprise development, budding entrepreneurs and all they hire will earn a living, which in turn uplifts their quality of life. These programmes could lead to long term economic growth for entrepreneurs, their families and friends and their entire communities. The enterprise development programme is just one of the elements of BB-BEE and is considered an effective way to combat poverty across the globe.
    IT'S ABOUT GOOD BUSINESS SENSE
    Fortunately, there are many ways to comply with Enterprise development and because it is very easy to calculate how much your business have to spend (1% of Net Profit After Tax or NPAT for short), it is fairly easy to score the maximum available points on your B-BBEE Score Card. Just remember that there needs to be proper recordkeeping of all the Enterprise Development spend that you do. Also, very important to remember is that both Large Businesses as well as Qualifying Small Enterprises (QSE's) must comply with this element.

    CORE DELIVERABLES


  • Provision of training or mentoring by suitably qualified entities or individuals to SMME's which will assist the SMME's to increase their operational or financial capacity; A Good example of this is How2Tender.co.za's Enterprise Development package!
  • Investments in beneficiary entities (SMME's);

  • Loans made to beneficiary entities;

  • Guarantees given or security provided on behalf of beneficiaries;

  • Direct costs incurred by a measured entity in assisting and hastening development of beneficiary entities;

  • Contributions made to settling service costs relating to the operational or financial capacity or efficiency levels of beneficiary entities;

  • Relaxed security requirements or absence of security requirements for beneficiary entities unable to provide security for loans; 

  • Settlement of accounts with beneficiary entities over a shorter period of time in relation to the measured entity's normal payment period, provided the shorter     period is no longer than 15 days;

  • Providing training or mentoring to beneficiary communities by a measured entity;

  • Payments made by the measured entity to suitably qualified and experienced third parties to perform Enterprise Development on the measured entity's behalf.