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.
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 R10 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 R10 million and R50 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 R50 million will need to comply with all 7 elements of broad based black economic empowerment.
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.
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
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.
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.
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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