Enterprise and Supplier Development (ESD) refers to a set of affirmative action and local content development measures aimed at promoting economic transformation.

A good ESD programme is designed to “facilitate access to, and improvement of” a small business through the following:

• Mentorship, specialist support and networking opportunities that seek to build the capacity of the SME to deliver;

• Access to capital that allows for further investment into the SME; and most importantly

• Procurement of goods or services by the corporation from participating SMEs that provides sustainable revenue streams.

The focus of ESD programmes is to further develop entrepreneurs, because of this, businesses that can join such programmes are often in the early stage or seed stages. This also means requirements for a business may not be as stringent. 

Getting into the right Enterprise Supplier Development (ESD) Programme has the potential to be life-changing for a business.

Resourceful Funding Ideas For SMEs    

One of the biggest challenges entrepreneurs face is securing funding. For many entrepreneurs, the first port of call for capital is banks. But it’s important to remember that banks are not the only viable choice, particularly if you have approached a bank and been turned down. Here are your other options and SME funding ideas:

GOVERNMENT INSTITUTIONS

​The government has a huge role to play in supporting and encouraging small to medium enterprises (SMEs) in the country. Not only are small businesses job creators, thereby reducing unemployment but small enterprises are set to be one of the biggest drivers of economic growth.

There are various government institutions offering funding to help with small enterprises including:

• The Department of Trade and Industry (DTI) has the Black Business Supplier Development Programme (BBSDP), a cost-sharing grant offered to black-owned small enterprises.

• The National Youth Development Agency (NYDA) has a grant programme providing funding to formal and informal businesses.

• The Small Enterprise Finance Agency (SEFA) offers loans ranging between R50 000 to a maximum of R5 million.

New This Week (12 September 2022)  

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Get the most from your Accountant

Traditionally, bookkeepers and accountants played a largely administrative role which entailed seemingly endless filing and manual inputting of information, all whilst keeping a close eye on the clock. 

With the change to a more advisory role, accountants and bookkeepers are no longer seen as just number crunchers. Now, they can make forecasts for the next financial year, help the client with the drawing up of budgets and point out where they might be overspending, amongst other value-adding services. 

It is more about being a business consultant and looking at the client’s business as a whole, than simply crunching the numbers in the background.

Need a Bridging Finance? For a Free Quote for Business Funding, visit SME South Africa. 

👑 FEMALE ENTREPRENEURSHIP STORIES OF SUCCESS 👑

12 Big Lessons from some of SA’s most Inspiring Women 

The Role of Education in Increasing Tech Use Among SMEs 

Can tech education increase the use of tech solutions among SME owners? To find out why South African small business owners are not using or investing in technology solutions, SME South Africa launched the white paper report, Advancing Technology Use Among South African SMEs to Accelerate Growth.

The white paper looks at how digital technology and connectivity can help level the playing field for small businesses to compete with their larger counterparts by enabling SMEs to access new markets, reduce business costs, and improve efficiency and competitiveness.

• The obstacles that hinder the use of technology by SME owners.

• The importance of education in increasing tech adoption.

• Strategic recommendations and solutions going forward.