Black Business Supplier Development Programme (BBSDP)
The Black Business Supplier Development Programme (BBSDP) is a cost-sharing grant offered to black-owned small enterprises to assist them to improve their competitiveness and sustainability to become part of the mainstream economy and create employment.
The programme provides grants to a maximum of R1 million:
R800 000 for tools, machinery and equipment on a 50:50 cost-sharing basis; and
R200 000 for business development and training interventions per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology on a 80:20 cost-sharing basis.
Objectives of the incentive scheme
To fast-track existing Small, Medium and Micro Enterprises (SMMEs) that exhibit good potential for growth into the mainstream economy;
To grow black-owned enterprises by fostering linkages between black SMMEs and corporate and public sector enterprises;
To complement current affirmative procurement and outsourcing initiatives of corporate and public sector enterprises; and
To enhance the capacity of grant recipient enterprises to successfully compete for corporate and public sector tenders and outsourcing opportunities.
Qualifying criteria of the incentive scheme
Fifty-one per cent black majority shareholding;
R250 000 to R35 million turnover per year;
One year in operation and trading as a business;
Fifty per cent management positions held by black people (historically disadvantaged individuals);
Enterprises formally registered for VAT;
Eligible to obtain funding to a maximum of R1 million:
R800 000 for tools, machinery and equipment on a 50:50 cost-sharing basis; and
R200 000 for business development and training interventions per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology on a 80:20 cost-sharing basis; and
Be operating and trading for at least one financial year – at the sole discretion of the dti, an enterprise that has been operational/registered for less than a year may be considered for this incentive, provided that the enterprise can supply sufficient evidence to service a tender/contract.
For further information, please refer to the relevant guidelines, documents and schedule of applicable terms (glossary of terms).
NB: To apply for the BBSDP, applicants should contact any of the accredited Network Facilitators (see Network Facilitator), who will assist with completing and submitting the application.
