Client: Department of Trade and Industry
- January 25, 2020
Impact Economix is a strategic research partner for the South African Department of Trade and Industry and conducted a study for the dti into the utilisation of Enterprise and Supplier Development Funds, a well as the benefits that are (or are not) achieved and by whom through such expenditures. Anecdotal evidence suggests that there may be serious gaps in the way in which measured entities utilize the funds that they allocate for ESD and the benefits that accrue to the targeted suppliers and small enterprises. In order to identify and address the suspected gaps, this study will assess corporates utilise ESD-allocated funds and how the implemented initiatives contribute to the development and growth of targeted black suppliers and small enterprises. The objectives of this study are:
• To determine how ESD funds are utilized to develop and grow intended beneficiaries
• To assess how intended beneficiaries have benefited from participating in ESD-funded support.
• To develop recommendations for addressing the identified problems in the utilization of ESD funds
Nine corporate ESD case studies were conducted (involving interviews with senior ESD managers, service providers, and SMME participants). In addition, the following three surveys were conducted, and responses received: Three surveys targeting the key participants in ESD in South Africa were conducted:
1. Top 100 Corporates listed on the JSE and corporate expenditure: 28 valid responses were received from corporates out of the top +-100 JSE listed corporates.
2. SMMEs participating in ESD and ESD benefits: 348 completed SMME responses were received.
3. ESD service providers and ESD profiles: 82 service provider responses were received.