Enterprise Development Spend

Enterprise Development Contributions consist of monetary or non-monetary, recoverable or non-recoverable contributions actually initiated and implemented in favour of beneficiary entities by a Measured Entity with the specific objective of assisting or accelerating the development , sustainability and ultimate financial and operational independence of that beneficiary. This is commonly accomplished through the expansion of those beneficiaries' financial and or operational capacity.

Socio-Economic Development Contributions consist of monetary or non-monetary contributions actually initiated and implemented in favour of beneficiaries by a Measured Entity with the specific objective of facilitating sustainable access to the economy for those beneficiaries.

There is in our view a vast difference between "facilitating sustainable access to the economy" and "assisting or accelerating the development, sustainability and ultimate financial and operational independence" of beneficiaries and a simple reading of the two definitions should be sufficient to eliminate the so-called "blurring" that BBBEE consultants are always on about. There is no blurring at all, the target beneficiaries of Socio-Economic Development are the economically marginalised whose access to the economy is blocked by unemployment, poverty, skills deficit and economic underdevelopment. The target beneficiary of Enterprise Development is a business entity (whether a startup or pre-existing) that requires assistance in order to establish its financial and operational independence.

Indeed, when we look more carefully at the two definitions, we soon see that the sustainability sought by the two initiatives differ significantly - Enterprise Development wants us to help build sustainable business entities, Socio-Economic Development is encouraging us to provide sustainable welfare substitution. Consequently unless your Enterprise Development spend aims to capacitate these collectives to become modern businesses with real access to genuine markets (not charitable NGO's selling beaded flags of the South Africa), one should not pretend that one is actually creating genuine sustainable business. Unfortunately the majority of these collectives will not become modern businesses unless they are mentored and coached effectively; this is where BSG International can assist.