Posts Tagged Business Sense
What will the detractors of BEE say now that a Black man has been replaced by a White person to head the South African Reserve Bank?
Personally, I see no problem with the appointment as long as she is the best candidate in the market. I have always supported the notion that BEE should make good business sense.
This appointment should send a strong message to those who think BEE is applied blindly on the basis of colour. BEE is about a progressive nation where every race is given an opportunity to contribute towards economic growth.
We have always said that our clients are more BEE compliant they realise. I consulted for a client yesterday. They are generic and hoped to be at level 5. In the end, we discovered that they had undertaken a lot more activities that earned them points. In many cases people say that they undertook a project because it made sense to do so, not for points. That doesn’t matter – your reason for doing something does not disqualify you from earning points for that project. At the end of my consulting I said to the financial director. “If I can get you to 80 points – level 3, will you take me to McDonalds and buy me a burger?? He smiled and nodded his head “.. in Mauritius.” I continued.
Socio-economic Development is one of the noble and good ways to earn BEE points. The key principle of Socio-economic developments is for enterprises to carry out initiatives that result in the beneficiaries having sustainable access to the economy and hence reduce the poverty barrier. However it involves costs to the enterprise since the enterprise should spend 1% of its Net Profit After Tax to earn all the points available.
In this period of recession where budgets are tight and management of costs is imperative, it is prudent for companies to align their social development programs that include corporate social investment, corporate social responsibility and marketing programs with their BEE targets and initiatives. We always say BEE initiatives should be implemented within the context of sound business principles. So I encourage businesses to incorporate and align their BEE activities with business goals and strategies. If your business strategies are linked to your social development campaigns the enterprise can earn the BEE points required whilst the enterprise market its image, brands or services and gain respect from government and customers.
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.