Make BEE Work
How to Make BEE Work for Your Business
Do not look at BEE as an obstacle to finance, trade licences, or government incentives. Indeed, if you haven’t embraced the advantages of BEE yet, it is time to change your perspective. Black Economic Empowerment is what can give your business a truly competitive edge. No doubt, as more and more businesses enter the market, the competition is growing strong. You need an edge and the solution is to embrace what B-BBEE can do for your business.
Know the Codes
You cannot take advantage of the potential offered for being BEE compliant if you don’t understand the codes. The truth is that understanding how each element is calculated and how it adds to your overall score can help you to focus on elements such as Skills Development and Enterprise and Supplier Development. Become informed by making use of our consulting expertise.
The Five Important Elements Include:
- Management Control
- Skills Development
- Enterprise and Supplier Development
- Socio-Economic Development
Ownership is the element in which the percentage of black ownership of the business is measured. Management Control measures the number and percentage of directors, executive managers, and employees in senior positions within your company. Skills Development measures your company’s investment in the training of black and disabled people, while Enterprise and Supplier Development measures your company’s investment and spend regarding black enterprise growth and development as related to your suppliers and non-suppliers. Finally, Socio-Economic Development measures your firm’s spend on aiding qualifying charities.
Your Company Falls Within One of the Following Categories:
- Exempt Micro Enterprise (EME) – This is a company with a turnover of less than R10 million per year. Such a firm automatically gets a Level 4 contributor status. If it is majority black owned, it is classified as Level 2, and if it is 100% black owned, it gets a Level 1 BEE certificate.
- Qualifying Small Enterprise (QSE) – This is a company with a turnover of between R10 and R50 million per annum.
- Generic – This is a larger firm with an annual turnover of more than R50 million.
Know How You Can Benefit from Compliance
Did you know that your company could benefit from government incentives and tax deductions regarding the skills development of black and disabled employees? Did you know that you could benefit even more by investing in the training of black candidate employees and by employing them after they have completed their learnerships?
Many more benefits can be realised. Don’t treat BEE compliance as a once-off process. Instead, seek expert advice on how to invest and structure your company with regards to elements such as Enterprise and Supplier Development and Skills Development to improve your BEE score, gain a competitive edge, and benefit from government grants and tax deductions.
Give us a call to help you get started.