B-BBEE COMPLIANCE COULD SCORE YOU MORE BUSINESS
The Minister of Trade and Industry recently announced that according to a baseline study conducted in 2008/09, a whopping 75% of all companies in the private sector are not BEE compliant. For some this is an indication that Black Economic Empowerment is falling flat, but smart business people will see the underlying opportunity that presents itself should your business have a compliant B-BBEE scorecard.
When all factors of your service / product are equal to that of your competitor, such as price, quality and reliability – your B-BBEE score could be the deciding factor in the deal. More and more customers are asking for BEE score as using a BEE compliant business contributes to their BEE scorecard. Therefore it is apparent that a high BEE score will provide the competitive edge over the opposition which will help open doors, get those tender appointments, and conclude contracts.
Rob Davies, Minister of Trade and Industry explained that the poor BEE compliance statistics does not mean that companies have not attempted to comply. Keith Levenstein of EconoBEE believes that many companies do not fully understand the requirements of BEE and there are many misconceptions in the industry. Making use of the professional services of a consultant such as EconoBEE could make all the difference in identifying the factors that will contribute to your business’s scorecard.
A good BEE score is based on the seven elements of BEE, and does not rely on only narrow based black ownership as many people tend to think. Ownership does make a difference but that is only one of the seven elements considered when calculating your scorecard. The percentage of black African management and employment equity also play a major role in attaining a good score. As mentioned earlier using the principles of preferential procurement means that utilising service providers / suppliers that are either black owned or BEE compliant also contributes to your score card. Assisting in the enterprise development of small black-owned businesses and skills development of your black staff will further ensure a higher BEE score. Finally, giving back to your community or donating to your local charity organisation could earn you the last few points you require to bring you up to a Level 1 or 2 BEE company.
Keith Levenstein of EconoBEE added; “Becoming BEE compliant is an essential part of doing business in South Africa. When starting the process, one needs as much information about BEE as possible. It is essential to get an understanding of what BEE is, how it affects your company and what you need to do in order to create a scorecard as quickly and cost effectively as possible.”
For more information on EconoBEE and services they offer visit their website www.econobee.co.za or call them at 011 483 1190.