Raizcorp believes that enterprise development needs to be strategic and, for different companies, this means different things.
What is the difference between enterprise development and supplier development?
Both enterprise development and supplier development are elements of the B-BBEE scorecard. In terms of supplier development, the corporate is required to support the growth of the entrepreneur’s business with either non-financial or financial assistance or both. (Non-financial support includes providing business development services either directly or through a third party such as Raizcorp.) The corporate is also required to procure goods or services from the supplier they are developing, which is what differentiates it from enterprise development. Enterprise development does not require the corporate to procure from the entrepreneur they are developing. However, Raizcorp is of the view that all enterprise-development beneficiaries should be selected to become possible future suppliers to their corporate sponsors
How can my organisation contribute towards enterprise development and supplier development?
Your organisation’s enterprise development and supplier development contribution is a percentage of your net profit after tax. (This is normally 1% for enterprise development and 2% for supplier development.) The rand value equivalent is used to purchase bursaries for selected black-owned companies to enter one of our many Raizcorp Arize programmes. 100% of your spend is attributable to B-BBEE points on your scorecard.
Can you provide an example of enterprise development?
An example of an enterprise development project would be for a corporate sponsor to support a business in their surrounding community, or to support a company in their channel to market (distributors or resellers). One of the most popular forms of enterprise development is for a corporate to support a small business that could become a supplier in future. The conversion from enterprise development to supplier development attracts an additional point on the B-BBEE