Broad-Based Black Economic Empowerment (B-BBEE) remains one of South Africa’s most important tools for inclusive growth. Beyond being a compliance exercise, B-BBEE is designed to drive economic transformation, develop sustainable black-owned businesses, and stimulate job creation. A critical part of this is Enterprise Development (ED) – one of the priority elements of the B-BBEE Scorecard.
This blog explains how Enterprise Development works within B-BBEE and why it’s so important for South African businesses today.
What is Enterprise Development?
Enterprise Development (ED) is the investment of time, expertise, and/or capital into black-owned small and medium enterprises to help them start, grow, and become sustainable.
This support can take many forms — from funding and mentorship to access to markets, infrastructure, or technical skills. Done correctly, Enterprise Development helps lift communities out of poverty, stimulates entrepreneurship, and strengthens the economy.
Under the Codes of Good Practice, Enterprise Development and Supplier Development are two of the three Priority Elements of the B-BBEE Scorecard. Every business that wants to achieve a good B-BBEE level must meet a minimum threshold of 40% in these elements or risk dropping one level on its scorecard.
Enterprise Development in the B-BBEE Scorecard
Since the revised Codes came into effect:
- Beneficiaries of Enterprise Development and Supplier Development must be at least 51% black-owned.
- Beneficiaries must qualify as either an Exempt Micro Enterprise (EME) (annual turnover < R10 million) or a Qualifying Small Enterprise (QSE) (annual turnover < R50 million).
- Measured Entities (companies participating in B-BBEE) can earn points by making either monetary or non-monetary contributions that improve the operational or financial capacity of these beneficiary entities.
This structure ensures that enterprise development actually benefits black-owned small businesses — the segment with the greatest need for support and the greatest potential for job creation.
How Enterprise Development Works in Practice
Enterprise Development creates sustainable businesses capable of competing in the mainstream economy. Contributions can include:
- Grants or low-interest loans to improve cash flow.
- Business mentorship and skills transfer to help management teams build capacity.
- Infrastructure support such as office space, equipment, or IT systems.
- Preferential procurement opportunities to give small businesses a stable market for their products or services.
- Professional services at no cost, such as legal, HR, or marketing support.
These contributions are not about giving away contracts — they are about building capacity so beneficiary businesses can stand on their own.
Why Enterprise Development Matters
When Enterprise Development is implemented strategically, it:
- Creates new jobs and strengthens the small business sector.
- Diversifies and stabilises supply chains.
- Increases competition, innovation, and product availability.
- Improves B-BBEE ratings and access to tenders or preferential procurement.
- Promotes inclusive economic growth across South Africa.
In short, Enterprise Development is not just charity — it’s a mutually beneficial partnership between established companies and emerging entrepreneurs.
The Link Between Supplier Development and Enterprise Development
Supplier Development takes ED one step further by helping black-owned businesses become part of a company’s supply chain. Combined, these two elements — often referred to as ESD — are critical for transforming South Africa’s economy at scale.
By meeting your Supplier Development and Enterprise Development obligations, you:
- Strengthen your own supply chain.
- Reduce costs and risks associated with a narrow supplier base.
- Help create jobs and stimulate growth in local communities.
Practical Steps for Businesses
- Identify potential beneficiary entities that align with your sector or supply chain.
- Conduct a needs analysis to see where your contributions will have the greatest impact.
- Develop a structured Enterprise Development Programme with measurable targets.
- Work with experienced B-BBEE consultants to ensure your contributions are properly verified and compliant.
- Monitor progress and adjust support to achieve sustainable outcomes.
Enterprise Development under B-BBEE is not simply a regulatory requirement — it’s an opportunity to build a stronger, more inclusive economy. By investing in small black-owned businesses, your company can unlock new markets, improve your supply chain, and play a meaningful role in South Africa’s economic transformation.
If you’re unsure where to start or how to maximise your B-BBEE score through Enterprise Development, Cenfed Consulting can guide you through every step — from strategy and beneficiary identification to verification and reporting.