Posts Tagged Enterprise Development
It makes no sense from the way it sounds but it does exist, there are blacks that are literally regarded as non-blacks in Broad-Based Black Economic Empowerment. A black person as defined in the Codes of Good Practice includes Africans, Coloureds, Indians and Chinese. Such a person should be a South African citizen by birth or descent, by naturalization before the 27th April 1994 or if the person became a citizen after 27th April 1994, but who because of the Apartheid Policy in place at the time, would have been entitled to acquire citizenship by naturalization prior to that date.
This is particularly important to note when calculating points for Ownership, Management Control, Employment Equity, Skills Development, Enterprise Development and Socio-Economic Development. Therefore in calculating BEE points, a measured entity may not claim points for a black person who does not qualify under the definition given in the first paragraph.
To put this in perspective, a measured entity that donates food, blankets or provides health care support in some way to black people who are foreigners in a refugee camp can not claim such an initiative to score Socio-Economic Development points. It also goes to an enterprise that is 100% black foreign owned, it couldn’t be used as an Enterprise Development beneficiary from a BEE viewpoint and it applies to Employment Equity as well as Skills Development.
This is an important aspect of BEE to take note of. Not all black people are black.
This year’s Procurement & enterprise Development Conference at Gallagher Estate proved to be a great success. How long has it been running, I wonder? Still it doesn’t mean I can’t confirm that it was a resounding success. The conference started with Keith Levenstein, EconoBEE’s CEO, welcoming all the delegates and hitting a hard-surfaced ground straight away.
It certainly started on a high note as the presenter dished out a spiral of theory, which immediately triggered interesting arguments from an actively involved audience. If the theory was anything to motivate active involvement, then the practical part of the conference was way too much to handle. With Case Studies such as the one for Mabuya Glass – EconoBEE’s Enterprise Development beneficiary, it left me without a shade of doubt that the true and genuine objectives of Broad-Based Black Economic Empowerment were being realized amongst the delegates.
I’m glad that I am not the only one who enjoyed the presentation, the delegates expressed their satisfaction too and it’s inspiring. I take my hat off to the EconoBEE team for such a magnificent job; you guys are up there amongst the best – WELL DONE. I enjoyed the food toooooo.
For the next conference, click on the link below
Msizi of Mabuya Glass Merchants has now made a few sales after our newsletter talked about his business and the glass white boards.
It is really a great feeling to walk into the office and look over at the fax machine and see orders.
In addition to helping Msizi our business will earn points. A real win win.
ISO (International Standards Organisation) gives this description:
“Why standards matter
Standards make an enormous and positive contribution to most aspects of our lives.
Standards ensure desirable characteristics of products and services such as quality, environmental friendliness, safety, reliability, efficiency and interchangeability – and at an economical cost.
When products and services meet our expectations, we tend to take this for granted and be unaware of the role of standards. However, when standards are absent, we soon notice. We soon care when products turn out to be of poor quality, do not fit, are incompatible with equipment that we already have, are unreliable or dangerous.
When products, systems, machinery and devices work well and safely, it is often because they meet standards. And the organization responsible for many thousands of the standards which benefit the world is ISO.
When standards are absent, we soon notice.”
The relevance? We are still seeing various SANAS (on behalf of ISO) accredited verification agencies that give vastly differing opinions on various aspects of the codes. As a result you cannot be assured that your scorecard will be consistently calculated by different agencies, or even by different analysts from the same agency.
We heard today of an agency that allows a measured entity to choose the inception date of enterprise development spend. The codes are clear, the inception date is the commencement date of statement 700, i.e. date of the publication of the codes (9th February 2007, or up to 5 years before, but definitely not after!).
It means some companies have had to spend twice as much this year to make up for last year’s shortfall, but if they had chosen this particular agency, could have saved their money. Since ED is 3% of net profit after tax, this “saving” could be millions of rands for large companies. On the other hand, any company that chose to use this agency and allow their interpretation stands the chance of their scorecard being declared invalid.
Some standard indeed! It’s about time SANAS, or ISO did something about it.
This last weekend I went through to the Bruma Flea market. It has been a very long time since I was at a flea market and found it quite fascinating. Hundreds of tiny businesses selling just about everything. The true entrepreneurial spirit is still very much alive in these flea markets.
While browsing I noticed a very nice looking painted picture. The lady selling the art work asked me what I was looking at, which I replied positively, she then asked what I did and where I worked and then eventually I told her that I worked in the BEE Compliance field.
Immediately her eyes opened – her little business selling various artistic things needs help. She even went as far as taking my contact details so she could contact me later.
This opportunity is available everywhere. South Africa has so many businesses, many of which are tiny “subsistence” businesses who have potential to grow but not the skills. Many others are small with lots of potential and given a chance will thrive.
Enterprise Development is everywhere. It is incredibly easy to find the right beneficiary who fits in with your business. Enterprise Developments goal is quite simple, get successful well trained businesses/business people to assist small black businesses succeed.
Finally it is simple, find a business that you can help and help them!
The codes allocate extra points for black owned (50%) or black women owned businesses (30%) for procurement. Also you can earn enterprise development points by supporting those types of businesses. Yet so many people I see cannot find these businesses. I visited a client two days ago, and recommended that they do something fast – their year-end is 28 February – one week away. The easiest way to earn extra points is by supporting black owned (50%) or even 25% black owned businesses, and paying their invoices COD! However many businesses do not have back owned suppliers or do not know that some of theirs suppliers fall into that category.
It’s a shame that too few black owned businesses exist and too few advertise their competitive advantage – what they can do for their own customers.
Is there a database of black, and especially black women owned businesses that we can all refer to? Should we start such a database?