Posts Tagged BEE Myths
I always get amused/annoyed when I read in the media of XYZ (Pty) Ltd, a BEE company. What exactly does a “BEE company” mean?
I take it literally to mean that the company is BEE compliant, i.e. maybe it is level 4 or 3, or even 2.
Of course this is nonsense, a “BEE” company in the eyes of the media is simply one that is black owned.
There is a definition in the codes “BEE controlled company”. This is a company that has more than 50% voting rights in the hands of black people.
A “BEE owned company” on the other hand is one that has more than 50% economic interest in the hands of black people.
In the interests of accuracy I’d like to see the press refer to these companies by their true categorisations.
A big perception about BEE is that it is a big unknown which could cause you to give away half your business. This point was once again very high on a recent clients BEE thoughts. He did not want to give away his business yet he thought he would have no choice. He also thought his customers would stop buying from him and he would be forced to close his doors.
This unfortunately caused him great stress yet it is not true.
His customers want a Broad Based BEE scorecard. This is something he not only can comply with but as he was a small business he can get a very good score.
My point is, BEE is not scary. It makes sense for your business. My advice is, attend a short course, it will clear all the BEE myths and as we like to say leave you BEE ‘Motivated.