|Wednesday, 19 September 2007 15:56|
Enterprise Development â€“ Money Well Spent
Enterprise Development main objective is to create sustainable business enterprises that achieve growth in order to create jobs and to grow the economy,Â the two necessary conditions for political stability and low crime rate. International research points out that jobs are created mainly by small to medium size businesses. ED is therefore crucial in ensuring the market economy survives, by ensuring the fruits of a growing economy is shared my most people.
TheÂ Measured Entities are crucial in ensuring that ED achieves its objective. Our experience demonstrate that business organisation that positively embrace Enterprise Development stand to gain more than the 15 points on their BBBEE scorecard. Effective implementation of ED can lead to accessing new customers; returns on investments just to mention a few.But intentions are not enough to ensure success ofÂ ED. The most common problem is the lack of knowledge and expertise that have led to theÂ slow progress in implementing Enterprise Development projects.
Part of the problem is that ED is not regarded as part Value Chain core-business activities. The task of implementation is relegated to the bottom of the drawer and management do not allocate resources to the project.
The support activities are outsourced to experts. Some businesses do not have the financial capacity to hire outside experts to assist them to implement Enterprise Development projects successful. The problem is made worse by the following issues:
Our Approach is called the Dinoka Way. We offer the following services to clients:
Hands-on consulting services that ensure projects are successfully implemented
Business Skills training to mentor Category A Beneficiaries
On-going support in all areas of needs
HUMAN RESOURCES MANAGEMENT
GENERAL BUSINESS SKILLS
Office : 011 483 1190
Dinokaâ€™s Small Enterprise Development Project
To Assist small enterprises to become viable and sustainable.
To help small enterprise grow
Dinoka offers a short, very practical small enterprise development training course. This consists of four half-day sessions over a four week periods.
The course includes a workbook that becomes the practical â€śbibleâ€ť of the business.
Starting a business, how to create a cc, bank account
Finance: Bookkeeping/SARS/Budgets, forecasts
Research, competitor analysis, SWOT
Networking and how it works
HR â€“ staffing issues
Homework â€“ Identify problems, solutions. Where are your customers. List 5 ways to get to your customers.
Make it a habit to contact customers every day. The homework gives actions to carry out each day and becomes part of the businessâ€™ daily activities.
Enterprise Development (ED) Code 600:
ED is aimed at helping mainly Black owned entities to move from â€śsurvivalist to a level of sustainability and profitability to become viable and sustainableâ€ť.
Benefit for the Measured Entity: Recognition of contribution to earn 15 points in the BBBEE scorecard.
Formula: A= B/C X D
B= Value of Contribution
C= 3% of NPAT
D= 15 points
R300 000/R1.8 m X 15= 0.25
= 0.25 of 15 points = 3 of 15 points
Where Value of Contribution is less than 12 months:
Contribution X Benefit Factor X Average Period
Dinoka Approach: Money Well Spent:
A) Value Chain Analysis to identify areas to focus on:
B) Recoverable Contributions:
Money spent on ED that yields interest (loans) or profit (dividend from investment)
Forms of Contributions: Benefit Factor
Maximising Contribution Recognition:
The procurement code states that an enterprise may multiply its procurement spend by 120% from any of its ED partners.
Benefit for Measured Entity: Procurement + ED points
Value for Money= Money well spent
C) Non-recoverable spend:
Money spent that is not recoverable
Forms of ED Contribution: Benefit Factor
Dinoka Professional Services:
ED Structure: Measured Entity to appoint a person to liaise with Dinoka to manage to ensure delivery of services and objectives are achieved.
|Last Updated ( Friday, 05 December 2008 15:08 )|