Importance of BEE Score
How Important is the BEE Score?
Being B-BBEE compliant is extremely important if your business wants to be competitive in the present day economy of South Africa. This also means that your firm should have a superb BEE score and here is why:
- To compete for government tenders.
- To purchase a state-owned building or any type of asset that belongs to the state.
- Join a public-private enterprise or partnership programme.
It is not just about private enterprise and government relations. A good BEE score is important if your firm wants to do business with B-BBEE compliant enterprises. Such businesses will rather want to enter into supplier and partnership agreements with firms that have good BEE scores, as this will help them attain and maintain their B-BBEE compliance. They can only reap the full benefits of having good BEE scores if they focus on doing business with B-BBEE compliant firms. By doing so, they gain points for procurement in compliance with the new B-BBEE codes.
Of course, having a solid BEE score also puts your firm in a preferred position. It will serve as incentive for your suppliers and business partners to become BEE compliant in order to gain your business’s trust and support.
Perhaps the most important reason not to ignore B-BBEE compliance is the fact that your firm becomes eligible for incentives, finance options, and grants, in addition to the potential of becoming a beneficiary of supplier development programmes from other corporations.
Focussing your attention on enterprise supplier development and skills training is the best way to achieve a good BEE score and benefit from it. You can now train your employees and candidate employees, and receive incentives such as tax rebates in the process. In addition, your procurement policies can help you earn more points and put your firm on the chart for incentives, grants, and rebates. As such, your investment in the skills development of workers thus pays off in terms of cost savings. Add to such, the benefit that trained employees bring to the company and it becomes clear that investing in skills development should be a priority for your firm.
The same holds true for supplier enterprise development. Your pledge of finance, skills development, and mentoring benefits your firm through grants, incentives, and rebates.
It is time to look at the BEE score from the perspective of how your firm can benefit from compliance. Let us help you gain maximum points through our innovative approaches to skills development, procurement, and enterprise and supplier development.