TEMBEKA Business Development Trust, has found its niche as a facilitator in the broad-based black economic empowerment (B-BBEE) of the South African economy. Where it works as a catalyst between corporations, business incubators, small and medium enterprises (SMMEs), and socio-economic development projects (SEDs). Corporations operating in South Africa have incentives and legislation from the cent
ral government to follow a B-BBEE compliant business model. Business incubators help with start-up as well as supply of technical and advisory assistance to small and medium enterprises, but often face the most challenges with financing. SMME suppliers and SED projects both seek to create sustainable enterprises that expand employment and wealth creation for South African citizens who are mostly unable to receive traditional sources of funding. Tembeka hopes to establish a business development fund that will seek corporate capital investment, which will be utilised to find and fund sustainable SMMEs. This work will be done in a partnership with business incubators. Dedicated corporate funds will also be used to support beneficial qualifying SEDs. Tembeka's micro-financing, monitoring experience, and quality management allows for a more efficient, cost effective strategy for corporations seeking better B-BBEE compliance scores and more diverse supply chains while eliminating any conflict of interest with their new suppliers. Allying with business incubators allows Tembeka to easily find and vet SMME potential suppliers, while incubator challenges regarding financing needs for SMMEs will be addressed by the development fund once established. SMME suppliers that are quality prospects will receive much needed funding from the proposed development fund, allowing the business to grow and eventually become a stable part of the corporate supply chain. This allows for more employment within the SMME while also making room for new SMMEs to grow and pays back the initial corporate investment. Investment in SEDs also allows for key community needs to be addressed through viable projects, enhancing the economy and overall well-being of society, while offering a tax-deductible expenditure and positive brand exposure to investors.
