Ownership in the Spotlight – EconoBEE Newsletter 04 August 2010

EconoBEE - BEE Points = Business

Our Prepare for BEE Verification Conference was very successful. The delegates have given us great reviews and most importantly are confident to prepare for their BEE Verification.
Our “Cost of BEE Compliance” newsletter has been so well received that we have decided to elaborate further with future newsletters – in-particular how to earn the points without the cost. Contact us so we can send you an advanced copy.

Talk around Ownership has been re-opened this last month. Bearing in mind the constant pressure for black ownership, we are happy to announce a breakfast workshop/course which will cover the basics of structuring an Ownership deal.

The EE Report

The Department of Labour (Commission for Employment Equity) is outraged at the low compliance and transformation shown in the EE reports. According to the data published the white population is still in the majority when it comes to top jobs and senior jobs. See 28820_10thceereport_part1 & 28821_10thceereport_part2.

Structure your BEE Ownership Deal

Johannesburg September 2010

more info…


BEE Charters Harm Empowerment through Ownership

BEE Charters have recently come under fire for their Ownership targets. Sadly every time these issues arise it slows down the empowerment process. Furthermore it creates a level of uneasiness and unhappiness which again slows down the Empowerment Process.

Some background
The BEE Codes of Good Practice set targets for Ownership at 25% (plus one vote). The Financial Services Charter wants this to be lowered and the CA Charter wants it to be increased. The targets on the Codes of Good Practice reflect a 10 year target starting from 2007. Broad-Based BEE comprises of  7 elements of which Ownership is allocated 20 points for Generic Companies and 25 for QSE’s.

Naturally Ownership is a very hard target to determine which is why careful thought went into the targets before it was gazetted.

A few points to bear in mind:

  • Ownership cannot be rushed. It will ultimately result in unethical deals taking place which will harm empowerment.
  • Other more empowering elements apply to the scorecard – Skills Development, Enterprise Development and Socio-economic Development.
  • Ownership is a final measurement of empowerment not a grass roots solution.
  • A select few elite individuals qualify for Ownership and not the whole population.

It is a great pity Ownership has become a sore point for each charter because ultimately it hurts true empowerment, slows downs transformation and delays the charter which is designed to help in the first place. Whatever the target and whatever the reasoning it is so much more important to have someone doing something rather than nothing.
Strangely most ownership deals do not even achieve their objectives – maximise points, involve the best people and increase profits!


My Turnover is Below R5 million per annum – Now What?

Small businesses are in the very fortunate position to be Exempt from compiling a BEE Scorecard. However being a small business does not mean you don’t need to do any work or have any documentation at hand. All small businesses who qualify need to have proof of their status.

The proof required is a confirmation from the accounting officer or auditor or a verification agency which states that their turnover is below the Exempt Micro Enterprise (EME) threshold. If that documentation is in place then they can regard themselves as BEE Compliant.

This is certainly great news for most small businesses because they are automatically allocated a good BEE Status which makes them more competitive and helps their larger customers earn BEE Points.

Recently Keith Levenstein was interviewed by Tony Blewitt on Classic FM. During the interview they spoke about compliance and what needed to be done for Exempt Micro Enterprises – Listen to the interview.

What do you need and how can we help?
EconoBEE has a very short and simplified process. We can offer you the support and documentation required to accurately state your EME Status. For further information, please visit our website, contact us at eme@econobee.co.za or 0861 11 3094.


While there is demand for a BBBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…


Not sure how to get a BEE Scorecard, click here to see a demonstration of how best to produce your own BEE scorecard.

Turnover below R5 million – find out how to get your BEE Exemption.

Is BEE procurement a pain? Sort it out quick and easy – click here.

EconoBEE Newsletter
04 August 2010

In this issue

  • The EE Report
  • BEE Charters Harm Empowerment through Ownership
  • My Turnover is Below R5 million per annum – Now What?

In other news

About EconoBEE

EconoBEE is a BEE consultancy that has developed extremely effective tools to measure and implement Broad Based Black Economic Empowerment. Our services focus on the business side of BEE.  Our services include EconoBEE Scorecard, BEE Scorecard Workshops, EME Pack, Document Pack, EconoLog and the 10 Step Process to BEE Compliance.

Our company supports various organisations and drives the BEE Expert Group to help maintain and develop knowledge in the BEE industry.


Already have a BEE Certificate?

Please send it to us and we will include it in our BEE Procured database.


Contact Us

Tel: 0861 11 3094 or 011 483 1190
Fax: 011 483 1195
Email: info@econobee.co.za
Web: www.econobee.co.za


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Remember
BEE Points = Happy Customers = Sustainable Business


That’s it for the time being.
Regards
Gavin and the EconoBEE Team

Executive summary of B-BBEE

Turnover below R5 million per annum – automatic BEE status

Turnover above R5 million per annum – you need a BEE Scorecard. Our workshops, scorecard tools, procurement manager or advanced managed services will be best for you.

Complete Managed BEE Service

Tip:

BEE Compliance does not need to be admin intensive and stressful – especially when you let us do all the work for you.

10 Strategic Steps to B-BBEE!

We have prepared an easy to follow guide “B-BBEE in 5 Minutes” and “Crash Course to BEE Verification” which explains BEE in a simple step by step approach.

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