One of the common and confusing BBBEE questions that most clients often ask is that they want their company rated or verified. We have prepared an easy to follow guide that will take you through the entire BEE Scorecard process.

B-BBEE Scorecard

What is the BEE Scorecard and do I need to comply?

The scorecard is a tool designed to measure your BEE compliance status and is based on 7 elements (see table below). Each element is measured based on a points scoring system. The complexity of the scorecard is determined by the turnover/revenue of a company.

The smallest companies – EME (Exempt Micro Enterprise), are exempt from all forms of BEE compliance. Their annual turnover is less than R5 million. They are automatically allocated a good BEE score that is level 4, or level 3 if they are black owned.

Small companies – QSE (Qualifying Small Enterprise), is an enterprise with an annual turnover of between R5 million and R35 million. They will need to prepare a BEE Scorecard, but can choose the 4 best elements out of the 7 elements.

The large, Generic companies with an annual turnover above R35 million will need to comply with all 7 elements of broad based black economic empowerment.

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ComponentElementsLarge Small
Direct EmpowermentOwnership2025
Management1025
Human Resource DevelopmentEmployment Equity1525
Skills development1525
Indirect EmpowermentPreferential Procurement2025
Enterprise Development1525
ResidualSocio-Economic Development525

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The first phase of BEE is education – you need to learn what BEE is and how it works in order to make the right business decisions. Get to understand BEE so you will make the correct – and profitable decisions.

 

The second phase is calculating your first BEE scorecard then setting yourself targets and formulating strategies that will help you reach your targets. You will need to identify where you are in the BEE process. We often say “You are more BEE compliant than you realise”.

 

The third phase is producing an accurate internal BEE Scorecard. If your score is low, work towards increasing it in line with your strategy. By creating a scorecard you will have a good grounding with which to build on and will know exactly how many points you should earn when you go for verification.

 

The fourth and last phase is the final BEE Verification.

 

BBBEE Verification or Rating

You don’t get a scorecard from a verification agency you get your existing scorecard verified!

Verification is the last step after you have produced your scorecard and worked on getting points. The purpose of verification is to ensure that the score you believe you have is correct. A BEE Verification Agency “audits” and “certifies” that the points you have earned is based on documentary evidence.

You need good points – not just a certificate

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How many points do I need?

A company gets on the “scoreboard” when they have more than 30 points. Secondly and more importantly you should aim to get more points than your competitors. Remember you need a scorecard because your customers want one, therefore the more appealing your score to your customers the more likely you are to get the business.

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Did you know?

Your Verification Agency is not allowed to consult to you, or even tell you how to improve your score. They will simply give you a form to fill in, and based on your response will verify that the data you have is accurate.

Your Verification Agency is not allowed to care about the number of points you get – WE DO

Your Verification Agency cannot be concerned about the speed of verification – WE ARE

Your Verification Agency is concerned about doing a good job for you – WE WANT TO GUARANTEE IT

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Verification is just but a stamping process on your efforts!

More about Verification

The key to BEE is the scorecard – unlocking the scorecard requires points. Smart businesses recognize that earning or losing their BEE points should not be by chance.

As much as they might want it, a company can unfortunately not ask someone to come in and give them a rating – they have to work towards building up the scorecard. Identify those business activities that earn points, calculate how many the points the company has earned throughout the entire year. Identify strategies to increase and optimize those points. However, in the end, the points you earn are a reflection of the company’s own activities and decisions.

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PRE Verification Checklist – avoid these common mistakes

  • Non-compliant – it is not the job of a verification agency (BEE Auditor) to help you earn points. Their job is to “audit” your BEE documentation.
  • Fewer points than you deserve – We have seen many instances of companies who jumped straight into verification. This is rather unfortunate. BBBEE is not difficult but does take some time and the right documents need to be collected. We often find thousands of Rands that have simply not been claimed – in most cases, a number of unclaimed points will pay for a consultant, the verification and earn you extra points.
  • No potential to improve – A self-assessment gives a company an extremely good opportunity to understand the effects of BEE on their company. If you are simply given a number you can’t find more points. Similarly, if you don’t know what changes your scorecard nothing will change.
  • Mistakes – We often see incorrect scorecards. This is the fault of the rating agency and should have been picked up by the company. How do you know a company has done a good job for you if you don’t know what they have done?
  • Think about this: Let’s say your verification agency made a mistake; they gave you a level one when you only have 50 points (true story). Who is embarrassed and loses credibility when you give your scorecard to your customers?
  • Wasted time: The verification process is detailed but should not take months. If you have data available and you are able to respond appropriately you will get your scorecard and not have to wait for ages.
  • Minimal benefits from BEE – lack of understanding of BEE leads to a lack of awareness of the potential opportunities BEE presents

 

Before your verification ask yourself – How much does a bad verification cost you and how much is an extra point or extra level worth? Keep your scorecard at the top of your mind, know what goes into it and it will increase.

Are you prepared for your verification?

Preparing for your verification primarily takes the form of BEE scorecard along with a file containing all the documented proof you need to prove your scorecard is correct. By preparing early for your verification you will save time and money in getting that verification produced and you won’t be surprised by a scorecard that is lower than you expected

Verification Guidelines

The DTI has issued The Verification Agency guidelines which explain exactly how a Verification Agency should operate, and how they will go about verifying your score. If you do not know how best to approach your Verification Agency, you may end up being very unhappy

The Verification Guidelines in simple terms is an audit manual. In effect, a verification agency will follow the same principles when verifying your BEE scorecard as your auditor does to your accounts

Many companies spend weeks and even months trying to get a verification. In reality, verification should take no longer than 1-2 days – if you are prepared

 

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How does EconoBEE fit into BEE Verification?

We are not a verification agency, we are a consultancy that specialises in Broad-Based BEE. We focus on the practical side of BEE. We treat a BEE Verification as a long term process, not a single event that happens once a year. It is our job to provide Education, Profiles and Strategies, assist with a BEE Scorecard Rating, implement BEE, optimize your points and give you BEE Confidence. Producing your scorecard and preparing for verification can be made easy by following the EconoBEE Way.

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What you really need at the moment

EconoBEE Educational Training Sessions

Attend one of our weekly half-day BEE workshops, full day BEE Seminars or a variety of practical, informative BEE conferences, seminars, workshops and more to prepare you for the important journey towards BEE compliance.

 

EconoBEE V3 scorecard software

Prepare a BEE self-assessed scorecard in no time at all. EconoBEE V3 Helps you approach the verification agency armed with a scorecard. With EconoBEE V3 the process is as easy as 1, 2, 3..

What if your annual turnover is less than R5 million?

Your business is exempted from producing a BEE scorecard. To save you time EconoBEE can design a set of documents that states your Exemption status and assists you in getting this message across to your customers

Require more intense and regular help?

Large companies will require additional time with a consultant. We have an effective approach to this through our advanced record keeping system. Consulting on all aspects of BEE can be arranged

BEE Verification

If you are ready for your BEE Verification we can assist you find a BEE Verification that will provide you with a verified Broad-Based Black Economic Empowerment Certificate proving your BEE level of compliance. EconoBEE is not a verification agency but has formed a relationship with various verification agencies around the country.

 

We are also available to support you during your verification process. This will ensure you earn all the points you deserve. It will also ensure that your scorecard is completed correctly saving you time prior to your verification.

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About Us

About EconoBEE:

EconoBEE is a management consultancy specializing in BEE and the elements of BEE, including skills development and enterprise development. EconoBEE is a division of EconoServ. EconoBEE also provides the intellectual property for the BEE Expert Group – an organization that assists BEE consultancies and ratings agencies with developing and maintaining their high standards

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