EME’s – Don’t Ignore the Advantage of BEE

03 Mar EME’s – Don’t Ignore the Advantage of BEE

Many small businesses are automatically exempt from the standard compliance requirements due to their smaller turnover. Business owners are often not even aware of the advantages or are nervous to participate in B-BBEE.

An Exempt micro enterprise that has a turnover of less than 5 million per annum will automatically qualify as a Level 4 contributor. Besides automatically obtaining this certification, they can add more points to their score and open themselves up to more business opportunity advantages. Even a start-up enterprises is considered exempt for the first year.


When the business has applied for a valid BEE certificate and is recognized as a level 4 contributor there is an automatic allocation of 65 points. If however the business is more than 50% black owned, this can result in promotion to level 3. EME businesses that are not over 50% black owned have the opportunity to improve their level if rated as a QSE (Qualifying Small Enterprise).

Elements of the scorecard can be seen below:

Element
Points
Ownership Equity25 points
Management Control25 points
Employment Equity25 points
Skills Development25 points
Preferential Procurement25 points
Enterprise Development25 points
Socio-Economic Development Contributions25 points

 

Many business owners may be surprised to see that the scoring system is not as difficult as anticipated. A QSE can select any four of the above seven pillars of the scorecard and with a starting base of 65 points already earned, they have the opportunity to raise their BEE status.

Clients that deal with a level 4 or 3 contributor will be able to enjoy valuable recognition due to their dealings with a BEE verified business. The business itself can begin to have a competitive advantage over non-BEE competing businesses.

The sooner a business applies and receives BEE verification the sooner they can start earning more points with the goal of improving their contributor Level score. Through obtaining a BEE Certificate a business will have more opportunity to thrive and grow in the future whilst creating skills and opportunities for the previously disadvantaged.

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