Enterprise and Supplier Development (ESD) programmes work because they’re genuinely a two-sided deal. Done properly, both the corporate sponsor and the SMEs it develops come away better off, not just the SME.
Why corporates run ESD programmes
- B-BBEE compliance. Corporates need to develop SMEs, particularly black-owned ones, to earn points on their B-BBEE scorecard.
- Supply chain diversification. Developing SME suppliers, rather than relying solely on established ones, creates healthy competition within the supply chain.
- Supporting economic transformation, while also creating future customers among the businesses they help build.
- Reputational benefit, both externally as a responsible corporate citizen and internally as a signal to staff that the business genuinely cares.
What SMEs actually get out of it
- Access to expertise: strategic, technical and general business support across accounting, marketing and operations.
- Access to contracts: real procurement relationships that create sustainable revenue, not just a training certificate.
- Access to funding, often in the form of direct investment.
- Access to networks, both other SMEs on the programme and the corporate’s own business network.
What separates a genuinely effective ESD programme from a box-ticking one
The strongest programmes share a few traits: senior leadership visibly backing the programme, ESD outcomes built directly into senior executives’ own scorecards, close coordination between the enterprise development and supplier development functions, and genuine involvement even where an external partner manages day-to-day delivery. A pipeline approach that runs enterprise development, supplier development and public procurement together, rather than as separate silos, tends to produce SMEs that actually leave the programme with a signed contract, not just a certificate.
Frequently asked questions
Do ESD programmes only benefit large corporates through B-BBEE points?
No. Well-run programmes give SMEs genuine access to expertise, contracts, funding and networks they’d struggle to access independently.
What makes an ESD programme more likely to lead to a real contract?
Programmes with senior leadership buy-in, ESD built into executive scorecards, and a genuine pipeline linking enterprise development to actual procurement tend to convert far more participants into signed suppliers.
Should an SME expect funding as well as mentorship from an ESD programme?
Some do, particularly those run through a dedicated fund structure, but not all. Confirm what’s actually on offer before applying to a specific programme.
How can an SME tell if an ESD programme is genuinely effective versus a box-ticking exercise?
Look at whether it results in actual contracts and funding for participants, or only training, and whether the sponsoring corporate treats it as a scorecard obligation or a genuine business priority.
A partnership, not a handout
The corporates that get real value from ESD, and the SMEs that graduate from it with an actual contract, treat the relationship as a genuine partnership rather than a compliance exercise. That distinction is usually visible from the outside before you even apply.
Further reading: The Ultimate List of ESD Programmes in SA | Department of Trade, Industry and Competition for official B-BBEE codes and requirements
Originally published in February 2019. Updated September 2026 to tighten this ESD guidance and cross-link to the current list of active programmes. The underlying structure of what makes ESD work remains durable.
