ENTERPRISE, SUPPLIER AND SOCIO-ECONOMIC DEVELOPMENT PROGRAMME

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1 A service to many leads to greatness ENTERPRISE, SUPPLIER AND SOCIO-ECONOMIC DEVELOPMENT PROGRAMME Individual Empowerment. Community Empowerment. Business Empowerment.

2 EQUITY OWNERSHIP - 20% B-BBEE SCORECARD - 100% MANAGEMENT & EMPLOYMENT EQUITY - 15% SKILLS DEVELOPMENT - 20% ENTERPRISE AND SUPPLIER DEVELOPMENT - 40% SOCIO-ECONOMIC DEVELOPMENT - 5% encourages investment in black enterprises to become operationally and financially independent promotes access to the mainstream economy for black people.

3 ENTERPRISE AND SOCIO-ECONOMIC DEVELOPMENT Economic growth is instrumental in creating prosperity and key to addressing unemployment, gender inequality, health and other povertyrelated matters. Economic civilisation progresses as a result of socioeconomic and collective enterprise development activities. Globally, Enterprise and Socio- Economic Development (ED & SED) has demonstrated its capability to inspire markets, differentiate supply chains, create job opportunities and promote sustainability for small and medium-sized enterprises. Research has indicated that enterprises that have accepted their corporate social responsibilities and actively drive community upliftment projects find it easier to build their brands and penetrate markets. In South Africa these aspects are individually packaged in the Broad- Based Black Economic Empowerment policy framework which endeavours to increase economic participation and facilitate transformation as well as equitable access to economic For B-BBEE verification purposes, enterprises must conform to the B-BBEE scorecard elements. This means that any participating business with an annual turnover exceeding R10 million will have to comply with the amended codes. Continuous and aggressive Enterprise and Socio-Economic Development creates jobs and improves the aggregate standard of living. Both these elements play a crucial role in economic growth and poverty alleviation. SERR Synergy Enterprise, Supplier and Socio-Economic Development Programme 3

4 A service to many leads to greatness BUSINESS OWNER CHALLENGES When implementing B-BBEE strategies, owners of medium and large corporations find it challenging to: identify feasible ED and SED projects for B-BBEE scorecard optimisation and compliance integrate ED and SED into their transformation strategy engage in suitable ED and SED programmes due to lack of time, administration resources and other skills earn maximum B-BBEE scorecard points for ED and SED elements align enterprise development initiatives with procurement find synergy between ownership, enterprise development and socioeconomic development projects. We recognise the impact that these elements have on business owners and, with these challenges in mind, SERR Synergy has designed the Empower Development Initiative (EDI) programme with tailor-made options to suit different business needs. THE EMPOWER DEVELOPMENT INITIATIVE Our EDI programme offers businesses a perfect opportunity to become more involved in the sustainability of black economic empowerment by actively contributing towards strategic Enterprise and Socio- Economic Development programmes. The EDI programme provides newly established or existing small blackowned businesses with start-up assistance. Our vision is to play an active role in economic transformation in South Africa by facilitating the sustainable growth of entrepreneurial black businesses, particularly those owned 4 Enterprise, Supplier and Socio-Economic Development Programme SERR Synergy

5 by the youth and black women, as well as businesses in rural areas. By assisting up-and-coming entrepreneurs and those individuals whom they employ, they can earn a respectable living and rise above poverty, which, in turn, will improve their quality of life. By understanding the importance of ED and SED as well as the advantages thereof, more opportunities could become available, which in turn will uplift the people of South Africa. Both our Enterprise Development and Socio-Economic Development programmes comply with the B-BBEE Codes of Good Practice and are approved by B-BBEE verification institutions. Contributions are fully recognised for ED and SED elements of the B-BBEE scorecard and for verification purposes. Our clients will receive credit for all contributions made towards these programmes. On receipt of contributions, the contributing entity will receive written confirmation of such contribution. EMPOWER DEVELOPMENT INITIATIVE (EDI) Enterprise and Supplier Development Programme (ED) Socio-Economic Development Programme (SED) Measured enterprises are required to spend 3% of net profit after tax on ED initiatives. Measured enterprises are required to spend 1% of net profit after tax on SED programmes. SERR Synergy Enterprise, Supplier and Socio-Economic Development Programme 5

6 A service to many leads to greatness We are committed to ensuring regular monitoring and evaluation of our programmes. Funds are applied responsibly and both programmes are independently audited on an annual basis. B-BBEE AND ENTERPRISE DEVELOPMENT As a priority element of the B-BBEE Codes of Good Practice, Enterprise and Supplier Development has a subminimum requirement of 40% of the points on the B-BBEE scorecard. It is essential that the minimum threshold requirements be met to avoid discounting of a B-BBEE level status. The measured entity must achieve a minimum of 40% on all three of the sub-elements of this scorecard element. It measures Enterprise and Supplier Development contributions as well as Procurement spend from empowering suppliers. Measured enterprises that do not fall within the scope of a particular sector are required to spend 1% of net profit after tax on enterprise development and an additional 2% on supplier development initiatives. By contributing to our ED programme, we can provide pre-qualified start-up enterprises with a solid foundation by means of resources (and tools) that are pragmatic in the establishment, development and improvement of the business. Our ED programme helps small black-owned businesses to grow and become viable. Investment in and expansion of local economies can ensure economic success and profitability for all businesses across all industries. 6 Enterprise, Supplier and Socio-Economic Development Programme SERR Synergy

7 PROGRAMME 1: ENTERPRISE DEVELOPMENT All ED contributions are collectively used on an annual basis to enhance the competitiveness of small blackowned businesses and start-up black businesses. website set-up (internet and communication) entrepreneurial and employee training resource development. All the above elements are important pillars for business credibility and legitimacy. Our pre-designed ED programme includes business start-up assistance and corporate identity development in the form of business registration with the Companies and Intellectual Properties Commission (CIPC) operational capital branding and marketing initiatives business logos business card and letterhead design and print layout and printing of marketing material The beneficiaries are black-owned start-up and small businesses that make a fair contribution to transformation. These beneficiaries are >51 % black owned, with a Level 1 or 2 B-BBEE rating. SERR Synergy Enterprise, Supplier and Socio-Economic Development Programme 7

8 A service to many leads to greatness We are in the process of developing a large base of pre-approved qualifying beneficiaries from various sectors for potential supply chain introduction. Our ED programme also includes beneficiary entities which are 51% black woman owned and meet the Supplier Development criteria in terms of the Construction Sector Codes. Our EDI programmes have contributed to the development and establishment of the following businesses amongst others: Destination Green Recycling Review Management Solutions Mahlatse Catering Services Umusa Isipho etc. B-BBEE AND SOCIO-ECONOMIC DEVELOPMENT As an element of the B-BBEE scorecard, SED measures initiatives which contribute to socio-economic transformation and promote access to the economy for black people. Social development beneficiaries are either black individuals, or, as is generally the case, groups of people, communities and charity organisations. SED measures the investment in community-focused and sector-specific programmes through the upliftment and growth of rural and disadvantaged communities. In this context it refers to community development as defined by the B-BBEE Codes. Our SED programme is driven by strategic social investment, community empowerment, 8 Enterprise, Supplier and Socio-Economic Development Programme SERR Synergy

9 meaningful partnerships and good governance that ensure sustainable development. Measured enterprises are required to spend 1% of net profit after tax on SED programmes. PROGRAMME 2: SOCIO-ECONOMIC DEVELOPMENT We contribute towards the following: medical expenses and health care funeral expenses bursaries for studies support for education programmes, resources and materials at primary/ secondary/tertiary levels community training and skills development for unemployed people facilitation of housing supporting individuals with disabilities, etc. All SED contributions and donations are collectively used to assist black communities, charities and members of communities to become economically active with financial support and developmental activities. All contributions are aimed at promoting sustainable access to the mainstream economy. SERR Synergy Enterprise, Supplier and Socio-Economic Development Programme 9

10 A service to many leads to greatness The secret to successful implementation of SED initiatives lies in our ability to implement the provisions creatively and not merely fulfilling duties of compliance. Our beneficiaries include individuals outside the mainstream economy, such as people living in rural areas, people with disabilities, participants in education programmes at primary/ secondary/tertiary levels and unemployed people. We have assisted the following beneficiaries amongst others: SA Cares for Life Nutribrands Project Flamingo Operation Healing Hands Karos and Kambro Men s Ministries in Eersterust. Our SED programmes include structured, outcome-driven programmes for beneficiaries from communities with limited services, as required by the Construction Sector Code. BENEFITS FOR CORPORATES All contributions and donations are made with the specific objective of contributing to the sustainability and financial and operational development of the beneficiary. All contributions made by enterprises will be recognised with valuable points on their B-BBEE scorecard. 10 Enterprise, Supplier and Socio-Economic Development Programme SERR Synergy

11 By contributing to our EDI programme, corporates are rewarded as follows: ED and SED programmes integrated into their B-BBEE transformation strategy Saving of time and money No last-minute sourcing of feasible ED and SED projects No searching for pre-qualified beneficiaries Access to qualified staff with financial, legal, admin and marketing skills Increased opportunities to earn optimal B-BBEE scorecard points A creative way to increase business for small and medium-sized businesses Opportunity to expand and transform the supply chain Earning maximum B-BBEE scorecard points SERR Synergy Enterprise, Supplier and Socio-Economic Development Programme 11

12 We invite you to contact us and find out more about our exciting Enterprise Supplier and Socioeconomic Development Programmes. CONTACT US PRETORIA Alenti Office Park, Block E 457 Witherite Road The Willows Ext 82 Pretoria DURBAN 166 Rodger Sishi Road Westville Durban t +27 (0) f +27 (0) e marketingpta@serr.co.za t +27 (0) f +27 (0) e marketingdbn@serr.co.za CAPE TOWN 101 Sterling Place 86 Edward Street Bellville Cape Town t +27 (0) f +27 (0) e marketingcpt@serr.co.za JOHANNESBURG Block 810, First Floor Hammets Crossing Office Park 2 Selbourne Road Johannesburg North t +27 (0) f +27 (0) e marketingjhb@serr.co.za SERR Synergy offers a range of business legal compliance solutions. Visit our website at for more information on our comprehensive range of products and service solutions. The role of leaders is not to get other people to follow them but to empower others to lead. studio112.co.za S Bill George