Most people I know agree that proper transformation is necessary in South Africa. We still have a long way to go to improve the situation for our population. The playing field are still not level!
Recently it was reported that Julius Malema is a partner in a company that won tenders worth R140 million in Limpopo. If indeed this report is correct, then most people will feel outraged by this report. Most will agree that this is not the type of transformation that we need or that anyone had in mind for the new South Africa. A new word has even been created in South Africa: “tenderpreneur”. The respected businessman Bobby Godsell has criticized tenderpreneurs where businesses add no value to a transaction.
Now there are two types of transformation or empowerment that are used in South Africa – the tenderepreneurs and the true broad-based. No other solutions have been proposed and interestingly enough all major political parties, including the official opposition have policies around transformation because they all recognise the need for transformation. There are only two choices: Tenderpreneur and broad based black economic empowerment. B-BBEE if implemented properly can achieve all that we want in South Africa. Tenderpreneurs will make a select few very wealthy and do nothing for the population at large.
I repeat – there are only two choices. If, like me, you agree that the tenderpreneur approach is wrong, then the only viable option is B-BBEE. The opposite of B-BBEE is making Julius wealthy! There is only one way to beat that option – by implementing B-BBEE so well that tenderpreneurs lose all their business.
Lets therefore try to implement broad-based black economic empowerment properly and grow the economy for everyone. Let’s build up our BEE scorecards, make a serious effort to help the less fortunate. We as South Africans ARE a caring nation – we just sometimes get carried away by our emotions and passion. Let’s direct that passion to where it can help. Let’s follow the B-BBEE codes, let’s support South Africa. Let’s get more positive.
Let’s make B-BBEE the only viable alternative to B-BBEE.
#1 by Keith - March 4th, 2010 at 11:19
Richard, what you say is absolutely untrue! (Please read the rest of this response before replying) You did not lose your business to BEE, and your lack of job has nothing to do with BEE.
The people you dealt with chose NOT to embrace BEE. They called it BEE, and you fell for their trap by believing that it was BEE. BEE – broad-based black economic empowerment is very different to your situation. You do not, and never did need a “BEE partner” to become BEE compliant. That you fell for it is terribly sad – considering that we have spent the last 5 years educating South Africans on what BEE is and what it is not. Most people see I support BEE and stop reading further, without ever knowing that BEE is about the seven elements, that “proper” BEE is about doing lots of good things, about getting more business.
Richard, I have to question why you even considered “BEE partners”, especially since you were obviously a QSE. I’d like to know who told you that you had to have a “BEE partner”. You could have reached level 1 without any ownership changing hands!
If your customers were private enterprise companies then their insistence was on a BEE scorecard, not a partner. They would have been incredibly happy with a level 1 scorecard from you. It would have been at negligible cost and very rewarding to you.
#2 by benbreda - March 3rd, 2010 at 10:16
It would seem that that many organisations (which can be considered as state organisations i.e trade unions) have vested interest by virtue of their shareholding(presumably bought with their pension funds) in companies. Surely they will ensure that any state contract that they are involved in will be channeled to “their company” Heard not so long ago ‘if you give us a bigger shareholding in your company we can help with the big government contracts”? Where does one’s loyalty lie?
#3 by Richard - March 2nd, 2010 at 18:48
Hi – I am a white 59 year old who was not able to find work due to my race and age. 10 years ago I started a small business procuring promo itema & corporate gifts. I built up a sustainable income working from home – nothing earth shattering – just comfortable in middle class suburb with average type vehicle. The reason I HATE tendertrepeneurs is that they have cost me my business as all the hard work in craeting a small client base was shattered with sponsors of my client base insisting on BEE sourcing. Firstly some so called BEE “partners” insisted on large remuneration deals to come aboard. Secondly, when the deals went to BEE suppliers they ended up paying over 50% more than what I quoted on all the items. One item alone was R 12 000 more !! So sad as in the end there was less to go around to the end beneficiaries (education in the townships).