03 Mar Understanding points on your BEE Scorecard
Many businesses have considered getting a BEE certificate due to the potential advantages. Most will be unsure of how to go about it and exactly what the BEE verification process entails.
The BBBEE scorecard is a means of measuring your current BEE status. There are 7 elements to the scorecard with points allocated to each element. The BEE scorecard will vary according to the annual turnover of your company.
An EME (Exempt Micro Enterprise) is a small business with a turnover of R5 million or less per annum. These companies will achieve a level 4 score unless they are more than 50% black owned, which will result in a level 3 score.
A business that has an annual turnover between R5 million but less than R35 million will be deemed a QSE (Qualifying Small Enterprise). This entity will need to select 4 out of the 7 elements. Each element chosen has a weighted score of 25 points each. This differs from larger companies that have an annual turnover of more than R35 Million. These larger companies are termed Generic and will have to ensure that they score points for all 7 elements as opposed to the smaller QSE.
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Getting the correct advice and training on BBBEE will ensure that you understand BEE and the scoring process. Training will help you understand how you can earn points and if necessary make changes. This will assist you that when verified, will enable you to achieve the highest possible BEE rating. Companies will be rated against set targets for the different elements. The total score is out of 100 points with a further 7 bonus points. A company that scores under 30 points will be deemed non-compliant. The higher the score the better and this can be an important factor when competing against other similar companies for business or tenders. A company can benefit long term from understanding each of the 7 elements of the score card. They can begin to implement strategies and understand how and where they can earn valuable points no matter what the size of the business.
Once you have received your BBBEE Certificate, you can continue to work on and develop your existing BEE score as well as your future business growth strategy.