Enterprise Development

It is widely recognised that small, medium and micro enterprises (SMMEs) play a central role in driving the African continent's growth trend and that SMMEs form the backbone of employment-creating initiatives in Africa. A study by the Department of Trade and Industry (dti) indicates that SMMEs contribute more than 42% of South Africa’s GDP and that they are vital to the success of the economy. It is important to acknowledge that a bigger commitment to SMMEs does not make big business perform any worse; in fact the opposite applies: it helps to urge economic growth, and helps create opportunities and jobs. Big business is therefore encouraged to make it their responsibility to ensure that SMMEs are developed to the level that makes them competitive and improves the quality of service they provide.  (Mr Xolani Mkhwanazi, Chairperson of BHP Billiton)

BEE is not a compliance issue…….
……..it is a competitiveness issue

Apart from contributing to the economy by developing SMMEs, the South African Government expects a business to have their contribution to BEE measured according to a set of criteria defined in the Codes of Good Practice, an aspect of which is contribution towards Enterprise Development.  An organisation’s score will count towards its customer’s score and so it will be the customers who decide whether the supplier’s BEE score is good enough for them to accept the particular organisation as a supplier.  If an organisation does not achieve an adequate BEE score, there are no fines or any other punitive measures; it will simply mean that it will become more difficult for it to do business in South Africa.  Thus, a good BEE score is not about being compliant, but rather about being competitive. 

As a Business and Technology Incubator, Softstart BTI is specifically geared to contribute to Enterprise Development through its programmes to establish sustainable SMMEs in the ICT sector, whilst playing an important role in the promotion of BEE, nurturing previously disadvantaged groups, including women and the disabled, and serving the broader community with active outreach and partnering programmes, including Satellite Incubators based at Tertiary Institutions.  Softstart BTI is a Level 2 B-BBEE Contributor with a 125% B-BBEE Recognition Level and a Value Adding Enterprise and its Enterprise Development Programme had been certified by Empowerdex as being fully compliant with the requirements of the BEE Codes and all relevant criteria therein for the recognition of Enterprise Development Contributions.  If an investment is made in Softstart BTI, contributing companies will be able to recognise the full Rand value of the contribution at a factor of 114.16%, after taking into account the enhanced recognition for contributions for Category A beneficiaries, as outlined in the Codes.  Softstart BTI is thus ideally positioned for entities to earn points towards their own scorecards when they support the Incubator and its entrepreneurs.