SD contributions are made to companies that are already part of the current chain of suppliers of the measured entity (ME). DE contributions are made to companies that are not part of the ME supply chain. When examining the person a ME is required to attend, he or she should conduct a critical analysis of the nature of the recipient. Some factors to consider: Below are the most common types of contributions that make ME DE or SD beneficiaries: The following documentation is needed to prove the DE and SD contributions: Business Development (ED) and Supplier Development (SD) is one of the three priority elements of the Broad-Based Black Economic Empowerment (B-BBEE) Scorecard. A company must reach a minimum of 40% of the categories on the ED and SD scorecards (without bonus points). SD 4 points out of 10 points and ED 2 points out of 5. The 40% failure to comply with the waterproofing results in a one-step drop in the B-B-BBEE dashboard. An entity may make monetary or non-monetary contributions to a recipient unit. Requirements may be different when a company is audited on the basis of a specific sector code.