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ED/SD/SED Beneficiary

ED/SD/SED Beneficiary

ED/SD/SED Beneficiary

As per the B-BBEE Code Series 400 – Enterprise and Supplier Development (ESD) element, large organizations are incentivised through B-BBEE points for their contribution to developing smaller entities.

Combined, Enterprise Development (ED) and Supplier Development (SD) form one of the three priority elements of the Broad-Based Black Economic Empowerment (B-BBEE) Scorecard. Businesses are required to achieve a 40% subminimum of each of the categories on the ED and SD Scorecard, and failure to comply with the prescribed subminimum leads to a drop of one level on the B-BBEE scorecard.

The inability to adhere to these legislative prerequisites may impact your business’s B-BBEE scorecard. Skills Development Corporation boasts over a decade of expertise in these areas and can easily facilitate, oversee and manage these processes on your business’s behalf.

Enterprise

Development

Contribution to a black-owned business (EME or QSE with at least 51% Black Ownership) that is not part of the Measured Entity’s (ME) supplier chain. The nature of the contribution, which can be monetary or non-monetary, is aimed at increasing the business financially and operationally. By procuring goods and services from the ED Beneficiary in the second year, the ME will be entitled to one bonus point on the Enterprise and Supplier Development Scorecard as the ED Beneficiary has now graduated to a Supplier.

Supplier

Development

Contribution to a black-owned business (EME or QSE with at least 51% Black Ownership) that is part of the Measured Entity’s (ME) supplier chain. The nature of the contribution, which can be monetary or non-monetary, is aimed to increase the business financially and operationally.

Socio-Economic

Development

Contributions implemented for individuals or communities to progress society, where at least 75% of the beneficiaries are classified as black people in terms of race. SED contributions may be in the form of grants, offering discounts, covering overheads or direct costs, providing professional services at no cost, or providing professional services at a discounted rate.