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BEE points for large corporates for trading with smaller businesses
Posted by Cornilius in procurement on July 8th, 2009
The B-BBEE codes have encouraged the growth of small businesses (those with annual turnover below R35 million) and Black owned businesses through the element of Preferential Procurement. Generic companies (companies with annual turnover of more than R35 million) earn 8 points for spending just 25% with suppliers with annual turnover below R35 million as well as Black owned and Black women owned businesses.
This certainly encourages large generic companies to buy from suppliers who need support to grow leading to more empowerment of the more deserving entities and individuals. The growth of any company heavily hinges on the number of customers that they have. Having customers in the form of large corporates is more desirable for any small business because they have more capacity to pay for orders.
In other words, there is a benefit to the generic companies in the form of getting more BEE points while helping the sustainability of the smaller businesses.
Financial Year End
Posted by patience in BBBEE Knowledge, General, Scorecard points on July 1st, 2009
Most companies have their financial periods ending February or June and in most cases companies realize it when its too late to carry out any B-BBEE initiatives that can make them earn the B-BBEE points for that period. I recently talked to a company, which is just finalizing its year-end and they already know their score and are now looking at ideas and ways of improving their B-BBEE score in their new financial period. Such a company will surely meet its customer’s needs of a good B-BBEE score and hence improve their chances of getting the much-needed business in the new financial period. However for other companies the B-BBEE quandary continues they are not doing anything and are going to continue to give their customers empty promises of becoming B-BBEE compliant in the next financial period.
Like any other business policy or strategy, B-BBEE requires all the basics of effective strategy implementation – good ideas, organisation, resources allocation, action plan, monitoring and evaluation. Our workshops/conferences and scorecard methodology can help you produce / improve your scorecard and effectively implement B-BBEE.
Adoption of BBBEE
Posted by patience in BBBEE Knowledge on May 20th, 2009
The adoption and implementation of BBBEE is still varied in the country. Where does your company fall in the adoption process of BBBEE?
Innovators
Brave companies with people, pulling the change. Such companies have embraced BBBEE and are continuously improving their BBBEE points.
Early Adopters
Respectable companies, opinion leaders in their industry leading the pack and are improving their BBBEE points.
Early Majority
Thoughtful companies, careful but accepting change more quickly than the average companies and are beginning to implement BBBEE.
Late Majority
Skeptic companies which will only implement BBBEE when the majority have implemented BBBEE.
Laggards
Traditional companies, caring for the “old ways”, and are still critical towards BBBEE and will only accept it when it becomes mainstream or when forced to comply.
BBBEE is here to stay and will continue to gain momentum. The only way for your company to accept this noble phenomenon is to understand it and know how it affects your business. Our workshops/seminars and conferences are there to help you.
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