How Can My Business Embrace B-BBEE?

sab&t, b-bbee, bee verification

25 Apr How Can My Business Embrace B-BBEE?

The revised Broad-Based Black Economic Empowerment (B-BBEE) codes, issued by the Department of Trade and Industry (DTI) on May 1st 2015, are aimed at further increasing black ownership in business. With the changes, BEE compliant companies have adjusted their BEE strategies to secure their company’s future. If you are a business owner and haven’t considered BEE verification, you risk losing customers to other BEE compliant suppliers. Here’s how your business can embrace B-BBEE…

The Scorecard

The new B-BBEE scorecard has five priority elements measuring a company’s BEE status. Priority elements are ownership, skills development, and enterprise and supplier development. Points allocated will vary according to a company’s annual turnover…

  • Ownership – 25 Points
  • Management Control – 15 Points
  • Skills Development – 20 points
  • Enterprise and Supplier Development – 40 Points
  • Socio-Economic Development – 5 Points.


Small Enterprises

As per our previous blog, EMEs (Exempted Micro-Enterprises) are ones that turn over less than R10 million per annum and, if your company fits into this category, you won’t require a BEE certificate. In addition, it’s not compulsory to comply with all elements. Simply complete an affidavit –which can be downloaded here – confirming your company’s annual turnover and percentage of black ownership. 100 % Black-owned EMEs qualify as a Level 1 Contributor – the highest score! 50% or more black ownership qualifies as Level 2, whilst those with no black partnership are recognised as Level 4, with 8 being the lowest score. As the revised codes encourage larger entities to support smaller BBBEE-verified companies, you have an opportunity to grow!

Small/Medium Enterprises

QSEs (Qualifying Smaller Enterprises) with an annual turnover of more than R10 million but less than R50 million need to comply with a minimum of two of the elements, with a choice between ownership (percentage of black ownership within the business), enterprise, and supplier development (supporting small black and woman-owned businesses), or skills development (assisting black employees to gain work-related skills by providing training). Like EMEs they qualify as a Level 1 or Level 2 Contributor based on the percentage of black ownership – a priority element. This means your score could be higher than other competing white-owned QSEs.

Medium & Large Entrprises

If your business has an annual turnover of more than R50 Million and, you want to do business with government, you need to comply with all five elements which include management control (percentage of black people in management positions within the company) and socio-economic development (contributions or assistance to black disadvantaged communities). In other words – support smaller BEE verified companies, ensure partners and management positively reflect transformation, train and assist employees to further develop skills, and invest in socio-economic causes.

Let Us Help You

Understanding and embracing BBBEE can have a positive impact on your business, further aid transformation, and address imbalances. SAB&T offers businesses of all sizes with BBBEE verifications, training, consulting, scenario planning, gap-analysis, and more. Contact us today for more information or assistance.

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