The Governance of Enterprise and Supplier Development

Abstract

The phrase “Local is Lekker” is very common in South African business but what does it really mean? In the context of this article, it encapsulates the importance of Enterprise and Supplier Development ‘ESD’, insofar as the relationship between small, medium and large businesses cooperating and in synergy for mutual economic benefit. The developmental aspect of this relationship is underpinned by the deliberate purchasing, sourcing and procuring of goods and services from local suppliers with competitive costs onto the supply chain. The pivotal role played by ESD is the creation of new business opportunities and entrepreneurial growth which results to job creation in marginalised communities, previously prohibited from large scale or full-fledged economic participation. While, local suppliers are profitable for large businesses, they certainly create socio-economic relief and boost local economic activity.