Dear Name

At the onset Broad Based BEE seems like a complete nightmare. The scorecard, the codes, the act all seem complex and difficult to understand.

You need not be afraid, not only is BBBEE easy, but it is also very practical, very achievable and if done properly makes complete business sense.

Where to start?
Understand the true requirements of BBBEE - lets start by looking at what the underlying business intentions of BBBEE are.

• Increase the total number of black participants in the SA economy
  • Skills Development
  • Job Creation
  • True Empowerment
  • Entrepreneurship
    
  • Social Development
  • Ownership and Management

Broad Based BEE and its seven elements (Social Development, Enterprise Development, Preferential Procurement, Skills Development, Employment Equity, Management and finally Ownership) are measured based on a scorecard where one earns points based on a target. The scorecard has 100 points available, which can be earned in each of the 7 elements. The more points a company earns the better it is for their customers.

In summary BBBEE is not a mandatory government requirement, but rather voluntary. Although it is voluntary it works by encouraging customers to buy from BEE compliant suppliers thus a competitive advantage is created encouraging suppliers to compete based on normal business practices which now includes a BBBEE Scorecard.

The scorecard is broken into various sectors and company sizes:

• A very small business (EME - Exempt Micro Enterprise) generally with a turnover below R5 million is exempt from preparing a BBBEE scorecard. In effect they are automatically allocated a good BEE score. A complete table is available on our website.
• The small to medium sized businesses need to comply with a vastly simplified BEE scorecard. These businesses known as QSE's (Qualifying Small Enterprises) need only select 4 of the available 7 elements. This is a tremendous advantage for smaller businesses as they often earn between 50 and 85 points.
• The large to corporate business (Generic) will need to comply with all 7 elements. With the right help a business with no or little black ownership can still earn 75+ points which is excellent compared to the average score.

The next major step - preparing your scorecard:
An EME does not need to worry about this step - if they have proof of turnover their job is done.
A QSE and Generic business have the same preparation steps. The significant difference between two is the final report, not the underlying principle.

Most importantly to have success with the scorecard you need to earn points. This implies reaching the targets - not going for a verification (the last step). Since the scorecard is measured on the last financial year period, what happened last year cannot change. Quite simply, if you want a good scorecard prepare one now for next year.

The most effective way to prepare a scorecard and earn points is by doing the calculations yourself. This is the most cost effective solution to preparing a scorecard however a consultant is most useful to check the finer details or guide you throughout the year but are unfortunately not able to collect the data off your own systems. A verification agency is also often asked to do this task. They are actually not allowed to assist you as it is a requirement of their accreditation that they must remain independent and impartial.

The final verification - EconoBEE does not do verifications, we educate and prepare our clients for this process. Importantly, before approaching a verification agency ensure that you have all the proof documentation available and that you have earned enough points. A verification is intended to give confidence to your scorecard not give you the score you want. Pricing is also a big issue, often agencies will charge based on company size, not work done. If you need a verification done, we know of the good ones who will give you fair pricing.

Finally, we have a complete 10 step guide to BEE, a 5 min crash course for BBBEE and a business guide to verification.

Many companies waste valuable time and effort and money in doing BEE deals to earn only between 15 and 20 points. What a waste! Attend our conference and learn how to earn 35 points by doing true empowerment.

Not sure if this is right for your business, why not give us a call (0861 11 3094) or send us a mail ( This e-mail address is being protected from spambots, you need JavaScript enabled to view it ) and we will give you all the advice you need to ensure you make the right decision.

There has been a great deal of confusion about the BEE Charters. A BEE Charter is an industry specific scorecard designed to maximise the effect of BBBEE in a particular industry.

Only a few charters have been officially released. They include; Tourism, Construction, Forestry and recently the transport sector with a number of sub sectors.

In each case there are minor differences to the ordinary QSE and Generic scorecard, some good others not as good.

If you do business with any of these industries don't worry. You use one of these charters only if you are in the industry ie a construction company building a train station is still a construction company or an IT company that designs software for a travel agency is still an IT company.

If you are in an industry that does not yet have a scorecard like the property industry you are required to use the standard QSE or Generic scorecard - no excuses.

About EconoBEE

EconoBEE is a BEE consultancy who 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.

Please This e-mail address is being protected from spambots, you need JavaScript enabled to view it it to us and we will include it in our BEE Procured database.