Is your business BEE compliant?
Many people in business assume that to become BEE compliant they need to make dramatic changes to the infrastructure of their organisation. While this can be true, it is often the case that a business already possesses some of the important attributes of BEE compliance, which can simplify the process of BEE verification.
The fundamental principle for measuring B-BBEE compliance is that a business possesses significant enough attributes in seven key areas of the enterprise. However, smaller businesses may not be required to qualify in all seven areas. Moreover, those with a turnover of less than R5 million (a micro enterprise) only require an exemption certificate.
(NOTE: some companies still want a full verification, even from exempted enterprises. It’s best to check with your customers first before you apply for an exemption certificate.)
7 Elements that determine your BEE score
- Ownership – measures participation in profits (or distributed profits) and voting rights.
- Management Control – measuring participation in the control of enterprise, at board or board-equivalent level
- Employment Equity – measuring employment equity in workplace
- Skills Development – covering initiatives to develop competencies of black people
- Preferential Procurement – addresses the extent to which an enterprise favours other enterprises with respectable BEE compliance levels in procuring goods and services
- Enterprise Development – initiatives directed at facilitating the commercial development of other enterprises
- Socio-Economic Development and sector-specific contributions – initiatives that promote access to the economy by black people
Each of the above elements is scored and then aggregated to formulate your BEE scorecard. This will determine your BEE rating. Each enterprise being different, there are a number of factors that determine what your overall score will be. That’s why we offer an initial free assessment – so you can judge what, if any, work you need to do in advance of your B-BBEE verification and devise an approach to deliver the most favourable BEE rating.
|
