David Kan's ICT firm Mustek took top spot in the 2008 Top Empowerment Companies (TEC) enterprise development rankings, outclassing financial services firms who are natural players in this factor of the broad-based black economic empowerment scorecard.
Nevertheless, financial services firms dominate the Top 10 enterprise development list - Investec took the second spot. Other strong performers include Cashbuild, Blue Label Telecoms, Growthpoint Properties, Enviroserv Holdings and Group Five. All these firms were awarded maximum points available in this empowerment factor. Enterprise development commands a weighting of 15% in the scorecard and these firms claimed all 15 points.
Mustek led the pack because it reflects the largest enterprise development spend as a percentage of its taxed profits. The target carried in the scorecard is 3% of taxed profits.
To a large extent enterprise development falls within the natural path of doing business for companies like Mustek. The group describes itself as SA's leading branded assembler and distributor of PCs, notebooks and related products. This business is largely pushed through a network of independent distributors, who source products from Mustek. From this network emerges a strong list of BEE operators.
Financial services group Investec, which prides itself on being the first bank to transform at ownership level, produced 92,5% enterprise development spend. Again, enterprise development lies in the natural path of financial services groups like Investec.
Investec excelled on other pillars of broad-based BEE, which in turn bolstered its overall standing from number 65 last year to a commendable sixth position. Cadiz, FirstRand and Nedbank also feature prominently in the enterprise development ranking.
"Some people don't realise that broad-based BEE isn't only about management and ownership - it's broader than that," says Mafedile Makwala of Mustek.
"BEE is becoming a business imperative and so we expect more companies to come to the party and realise the value of investing in areas such as employment equity, CSI (or socioeconomic development) and enterprise development," says Makwala.
Enterprise development of black small, medium and micro-sized enterprises (SMMEs), he says, is one of the ways to sustain economic growth and help curb joblessness and, therefore, poverty.
"To absorb unemployment in SA you need a strong SMME sector. You can't rely solely on large corporations for job creation - that's why the promotion of enterprise development is so important," says Kunyalala Maphisa, a lawyer and a commentator on BEE matters.
Blue Label Telecoms may have been listed for barely six months, but it has impressed many with its development initiatives. It scores full points here along with waste management firm Enviroserv, which in 2007 made R127m in pretax profits and revenues of R870m.
Enviroserv's overall score has also improved.
