21 Jul Revised Codes and Emerging Business
Government strongly believes that the revised codes of Good Practice which came into effect on the 1st of May 2015 should give emerging business an advantage. Under these codes, start-ups and EME’s or Exempted Micro Enterprises are now automatically recognised as “Empowering suppliers”.Businesses that fall into this category are ones with a turnover of less than R10 Million a year. Businesses with a turnover between R10 and R50 Million per year are known as a QSE or Qualifying Small Enterprise. South Africa’s economy needs a strong business environment conducive to the growth of these emerging businesses. This will help to create transformation with more effective black-owned enterprises and much needed employment.
EME’s as well as start-ups can automatically be recognised as “Empowering suppliers”, under the revised codes with the only requirement being a sworn affidavit confirming the annual company turnover and the percentage of black ownership. This affidavit can be downloaded from our website.
EME companies have the opportunity to procure more business with the revised codes. The reason for this is that both medium and large organisations termed Generic (with a turnover of more than R50 Million per year) will need to do more business with EMEs, QSEs and 51% Black owned companies. In essence, larger entities will have incentives for supporting and purchasing more from compliant EME’s and QSE’s. This will then give emerging companies business opportunities and means to broaden their economic base.
There are still many companies that have not applied for BEE verification due to confusion or apprehension. These are the companies that could risk losing business to competitors that are verified and compliant. Understanding the long term benefits in BEE compliance needn’t be a nightmare as there are companies that can advise and inform business owners on B-BBEE and the revised codes.
For more information or assistance on B-BBEE feel free to contact SAB&T on 0860 233 669 (0860 BEE NOW).