Enterprise development, which requires a further
owned exempted micro enterprise or qualifying
small enterprise.
In implementing these new codes, greater emphasis is
being made on Black Women Owned and Black Youth
Owned businesses as well as Business entities owned by
people with disabilities.
While the % stipulated may be minuscule, getting that
one contract for an SMME could be a significant game
changer.
In order to benefit from these amendments, firstly the
SMME’s will have to understand fully how various players participate in the supply value chain of big corporates and in the process identify gaps that SMMEs can
plug.
“SMMEs will have to step up in formalising processes and the business systems”
This may require significant amount of research of the
industry within which the SMME functions so as to know
both strengths and weaknesses of the various players in
the game. This may also open up opportunities of possible collaboration and partnerships with more established
suppliers that may not have the required equity.
Secondly, SMMEs will have to step up in formalising
processes and the business systems. Issues such as
complying with the relevant laws; getting the financial
statements records in place, ensuring that there are adequate internal control including practise of Good Corporate Governance, etc.
While these suggestions may be extremely demanding
on an SMME, they are the starting blocks to cracking
the code so as to participate in larger corporates supply
chains.
Even more importantly, though, the suggested actions
will also mean that the SMME is more sustainable and
therefore creating the much needed jobs and driving the
South African economy.
Busi & Ngoako Huma
KWG
1% of net profit after tax to be spent on any black-