o ensure sustainability of Enterprise Development Efforts. All programs are conducted in a language that the “man in the street” can understand and all business, financial, operational phrases as well as “corporate catch phrases” will be explained in layman's terms. All Mentors are selected for their passion for Entrepreneurship, Practical Experience, a will to Share Knowledge and finally, Qualifications. An understanding that “Not all small businesses will be successful but all men and women who aspire to be businessmen and women deserve an opportunity to try.”
NSDN is passionate about working with and developing established businesses already on their way to success, but also aspires to work with the start-ups and struggling business owners that need assistance to survive and become sustainable. Enterprise and Supplier Development
The new DTI Broad Based Black Economic Empowerment (B-BBEE) Codes of Good Practice which came into effect on 1 May 2015 are stricter in scoring and have dire implications for business owners that do not comply. A short summary of how each type of Enterprise is affected follows below. Exempt Micro Enterprises (EME’s):
Companies that have an annual total revenue of R10 million or less qualify under this section. EME’s benefit as they are deemed automatically to have a BBBEE status of a level four contributor with 100% recognition level, even if there is no black ownership. However, if there is 100% black ownership, the status is enhanced to a level one contributor with 135% recognition level. Qualifying Small Enterprises (QSE’s):
Companies that have an annual total revenue of between R10 and R50 million, qualify as QSE’s. They are required to comply with all five elements of the new code (Ownership (25 points), Management Control (15 points), Skills Development (20 points), Enterprise and Supplier Development, including preferential procurement, (40 points) and Socio-Economic Development (5 Points) and can no longer only select only four elements to comply. Large Generic Sector (LGS’s):
In companies with an annual turnover of R50 million or more, priority elements such as skills development will become an important and costly factor and the companies must be sure to establish and implement structured B-BBEE plans to ensure that all Enterprise and Supply Chain Development requirements are met. What has changed:
In the new Act, a concerted effort is made to improve economic opportunities by awarding more points in the ‘ownership’ element which affects larger companies (LGS and QSE). There is also a greater emphasis on skills development with an increase from 3% of payroll to 6%. Skills development is now not exclusive to employees “but to anyone the owner feels fit”. A company will also gain more points if they interact with businesses that are involved with employment and social change. The way forward:
Focus on your core business and let NSDN provide your Enterprise, Supplier and Skills Development and Socio-Economic Development Solutions. We can deliver our services under your own brand (“white labelled”) or even establish and operate a SMME Incubator on your company’s behalf. Tailor made results driven solutions is what it is all about! NSDN is a 100% local non profitable business that can assist your business with 4 of the 5 Elements of the new B-BBEE Codes of Good Practice (Ownership, Skills Development, Enterprise & Supplier Development as well as Socio-Economic Development). NSDN has a track record to be proud of and wants to partner local businesses to leverage off the opportunities offered by the new BEE rules.
