How do you go from planning ESD initiatives to putting them into action in a way that benefits both your business and the suppliers you support?

 

Many businesses have grand plans for Enterprise and Supplier Development (ESD), but they struggle to translate those intentions into reality. The gap between strategy and implementation can be a significant barrier. So, how do you get from developing ESD efforts to implementing them in a way that benefits both your company and the suppliers you support? The solution is to shift your focus on compliance to collaboration.  Instead of considering ESD as an option, consider it as an essential part of creating a more efficient and creative supply chain.  It is about creating a partnership in which your business benefits from a better supplier network and your suppliers gain the capacity, skills, and chances they need to thrive.

Making ESD work for your business requires more than just compliance.  When used correctly, ESD may become a strong strategic element that generates actual advantages for your business. 

With the support of important ideas and practical examples, here’s how you can make ESD work for your business:

 

1. 1. Include ESD in Your Main Business Plan

Successful ESD is not a separate initiative; it extends your business and supply chain strategy. This means:

 

Aligning ESD aims with business objectives: An effective ESD programme aligns with business priorities, such as ensuring a consistent supply of vital inputs, diversifying the supplier base to decrease risk, and stimulating innovation.  Having a defined ESD strategy that is linked to company strategy leads to increased efficacy.

• • Establishing an easy development pipeline: Rather than having separate programmes for Supplier Development (SD) and Enterprise Development (ED), establish a pipeline that reflects a small business’s organic growth.  Businesses may use an ED programme as a starting point to become future suppliers, which an SD program may assist them with. 

• • Consider Holistic Support Instead of Just Funding

 

Providing capital to a small business is often not enough for long-term success. The most impactful ESD programmes offer a comprehensive suite of support.

• • Offer mentorship and skills development: For many entrepreneurs, an important barrier is a lack of basic business skills.  Effective programs include training and mentoring in areas including financial management, operations, and leadership.

• • Promote market access: A procurement opportunity is the most important kind of help you can offer.  Besides developing suppliers, successful programs include them in the business’s supply chain, giving them a steady source of income.

• • Adopt a cooperative and evidence-based strategy.

 

Making ESD work requires a deep understanding of what your suppliers need and a commitment to a genuine partnership.

• • Conduct needs assessments: To identify unique obstacles and possibilities for each recipient, rather than a basic approach. 

• • Establish long-term relationships: Effective ESD requires a sustained commitment.  It necessitates ongoing participation, communication, and a common goal for success.  This promotes trust and enables you to handle difficulties as they occur. 

In conclusion, effective Enterprise and Supplier Development (ESD) depends on moving beyond mere compliance toward genuine collaboration. Integrating ESD into core business and supply chain strategies, aligning goals with overall business objectives, and establishing a unified development pipeline are critical steps. Emphasizing holistic support, including mentorship, skill development, and market access but rather than focusing solely on funding, ensures sustainable growth. By adopting a cooperative, evidence-based approach, underpinned by needs assessments and long-term relationship building, businesses can create mutual value and achieve successful, lasting ESD outcomes.

 

 

 

References

• • Accenture. (2020). Enterprise supplier development programme booklet. Available at: https://www.accenture.com/content/dam/accenture/final/a-com-migration/pdf/pdf-173/accenture-esd-final-booklet.pdf (Accessed: 9 September 2025).

• • B-BBEE Commission. (2021). Guide on Enterprise and Supplier Development. Available at: https://www.bbbeecommission.co.za/wp-content/uploads/2021/02/Enterprise-and-Supplier-Development.-22-02-21.pdf (Accessed: 9 September 2025).

• • Exxaro. (2021). The secret to a successful esd programme: holistic support. Available at: https://www.exxaro.com/media-and-insights/press-releases/impact-and-support-to-exxaro-esd-beneficiaries-during-covid-19/ (Accessed: 9 September 2025).

• • Gordon Institute of Business Science (GIBS). (2024). Enhancing enterprise and supplier development ecosystem effectiveness in South Africa. Available at: https://content.gibs.co.za/cmscontent/media/noqd4y5f/myres_enhancing-enterprise-and-supplier-development-ecosystem-effectiveness-in-south-africa-change_2024.pdf (Accessed: 9 September 2025).

• • Shoprite Holdings. (n.d.). Enterprise Supplier Development | Shoprite Next Capital. Available at: https://www.shopriteholdings.co.za/suppliers/enterprise-supplier-development.html (Accessed: 9 September 2025).

• • Trialogue. (2024). Enhancing enterprise and supplier development ecosystem effectiveness in South Africa. Available at: https://trialogue.co.za/wp-content/uploads/2024/12/Trialogue-Business-in-Society-Handbook-2024-web.pdf (Accessed: 9 September 2025).