In short: Enterprise and Supplier Development (ESD) programmes, part of the B-BBEE Code of Good Practice, can genuinely expand a small business’s market access, but most of the failures happen for predictable, avoidable reasons: the wrong programme for your growth stage, no real buying relationship with the sponsor, and sending yourself to every event instead of building your team.
What is ESD actually meant to do?
Enterprise and Supplier Development is the part of South Africa’s B-BBEE Code of Good Practice that supports the upliftment of small businesses a larger company may want to procure from. Done well, it gives an SME real access to skills development, funding and, most valuably, an actual buying relationship with a large corporate. The most common problem, according to Vivian Reddy, head of the access business unit at ESD specialist firm Edge Growth, is mismatched expectations: SMEs and corporates often have very different ideas of what the programme is actually supposed to deliver.
How do you know if your business is ready for an ESD programme?
ESD specialist Kealeboga Mokolobate’s first piece of advice is blunt: know your own growth stage before applying. Incubator-stage businesses are still at idea stage, often pre-revenue, and typically aren’t ready for an ESD partnership yet. Accelerator-stage businesses are generating revenue but still need extra resources to scale further, and that’s usually the stage where ESD adds the most value. Applying too early wastes both the SME’s time and the sponsor’s investment.
How do you choose the right ESD programme to apply to?
Most ESD programmes publish their case studies and selection criteria openly, from major retailers to hospitality groups, so there’s no excuse for applying blind. Research whether a corporate’s existing supplier base actually matches what your business produces before applying, rather than applying broadly and hoping for a fit.
Why does the corporate relationship sometimes not lead to real sales?
Mokolobate’s warning here is specific: sustainable supply chain inclusion depends on a genuine fit between your product and the corporate’s actual needs, not just goodwill. Understand where your product or service is genuinely most suitable, ask your current customers rather than assuming, and consider whether a small addition to your offering could open a new category with that specific buyer.
Should you enter multiple ESD programmes at once?
Khanya Okumu, ESD specialist at Old Mutual, cautions against this: businesses that move from one ESD programme to another without implementing anything they’ve learned end up with nothing to show for any of it. Her fix is disciplined follow-through: pick a small number of specific ideas from the programme, decide who implements them and by when, set a measurable target, and allocate real resources rather than accepting half-measures.
Should the founder attend every programme event personally?
Kay Vittee has made the case that investing in staff development, not just founder development, creates a more desirable workplace and improves retention. Sending yourself to every ESD event instead of developing your team means the business’s capability doesn’t actually grow beyond you personally, which limits how much the programme can help once you’re not in the room.
What’s the biggest relationship mistake SMEs make with ESD sponsors?
Being visibly critical of the sponsoring corporate does real damage, according to Reddy’s observations. Jannie Rossouw, head of Sanlam Business Market, frames the underlying principle: “The golden thread distinguishing lasting business associations from the rest is the authenticity of the relationship, how genuine the business association is.” People and corporates alike do business with, and refer business to, partners they know, like and trust, not the ones who complain the loudest.
Frequently asked questions
What growth stage should my business be at before applying for ESD?
Generally accelerator stage, meaning you’re already generating revenue and specifically need extra resources or market access to scale further, not still validating your original idea.
Is it a problem to apply to more than one ESD programme?
It can be, if you don’t have the capacity to actually implement what each programme teaches you. Better to fully extract value from one programme than spread yourself across several with nothing to show for any.
Does ESD guarantee the corporate will actually buy from my business?
No. A genuine product-fit with what the corporate actually needs matters more than simply being accepted into the programme. Research this fit before applying, not after.
Should the business owner personally attend every ESD event?
Not necessarily. Sending team members instead builds capability that outlasts the founder’s personal involvement and can improve staff retention.
Originally published in February 2019. Updated September 2026.
