What is ED?
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 either done for
commercial reasons or positive societal change.
to see that a small company grows fast in order to maximise the return on their investment. Mostly in South Africa it is done to benefit the broader society in order to stimulate economic activity with a specific focus of Black Economic Empowerment.
In terms of the BBBEE Codes of Good Practice, Enterprise Development aims to address key challenges facing small businesses, specifically black owned entities that struggle to take their business from survivalist or micro level to a level of sustainability and profitability. Enterprise development seeks to assist and accelerate the development, sustainability and ultimate financial and operational independence of SMEs through financial and non-financial contributions made by corporates.
Enterprise Development is a Priority Element on the Amended B-BBEE Codes of Good Practice that came into effect in 2015. It is also the highest scoring element under the revised BB-BEE codes with 40 points.