Definition in terms of the B-BBEE Codes of Good Practice of 11th October 2013 (BEE Codes 2013)
Enterprise Development Contributions
Means monetary or non-monetary contributions carried out for the following beneficiaries, with the objective of contributing to the development, sustainability and financial and operational independence of those beneficiaries:
a) Enterprise Development Contributions to Exempted Micro-Enterprises or Qualifying Small Enterprises which are at least 51% Black owned or at least 51% Black woman owned;
BizAdvance Consulting comments and references:
Relates to the Enterprise and Supplier Development (ESD) element of the scorecard, i.e. Statement 400 page 60. This element is a combination of two elements in the previous Codes of 2007, namely Procurement and Enterprise Development. Large entities no longer qualify as beneficiaries. Emphasis has been placed on the development of black suppliers as beneficiaries.
Enterprise Development Contributions are measured as a percentage of Net Profit after Tax.
Comments are based on the opinion of BizAdvance Consulting and may be subject to different interpretations and opinions by other parties. The comments and references are intended as a guide to readers but it is important that they are read in conjunction with the Codes and other related legislation. Please refer to our Disclaimer Policy.