Posts Tagged True Empowerment

ABVA gets a new Board

===
The following individuals have been elected to serve on the ABVA Board for the 2010/2012 term of office.

1. Brigitte Brun, AQRate KZN (Pty) Ltd
2. Chris van Wyk, AQRate (Pty) Ltd
3. Dumisani Mpafa, Black Economic Empowerment Verification Agency t/a BEEVER Agency cc
4. Kate Moloto, Moloto BEE Verifications cc
5. Loyiso Majija, EmpowerLogic (Pty) Ltd
6. Tony Balshaw, Grant Thornton East London
7. Wade van Rooyen, IQuad Verification Services (Pty) Ltd
===
With a new board comes new responsibility, let us hope that these new board members put the interests of True Empowerment and transformation first and not lobby for more business by offering interpretations that benefits verification at the cost of transformation.

, , , ,

No Comments


I Feel Good After Enterprise Development

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.

, , , , ,

No Comments


Suspect scorecards

I’ve just seen a generic scorecard, verified by an accredited agency that shows:
Ownership: 20.54 points (35.4% black ownership)
Management: 0.30
Employment equity: 1.83
Skills Development: 1.19
Procurement: 3.79
Enterprise Development: 7.22
Socio Economic Development: 0.00
They are a level 8.
There can be many interpretations but this looks very suspect.
35% black ownership and almost zero management!
They earned 20.54 points so by definition the black partner (or ownership scheme) has earned full net value their shares . Why would someone invest and pay some proportion for their shares and not ask for more than one non-executive seat on the board? Why would they not make some effort to get the board to transform? Why would they not make an effort to improve employment equity.

It is possible that the company is not fronting, and has made an effort to involve staff, but even then level 8 for a 35% black owned company is not very good.

, , , ,

No Comments


Finding the competitive edge

Given the priority of staying as competitive as possible, companies need to exploit all existing opportunity channels. This requires a knowledge and understanding of possible environmental impacts on your business.

In the South African business environment, BEE compliance plays a significant role particularly to those companies dealing at a business-to-business level. Your clients will require you to produce evidence of your BEE compliance status, without which they will opt to do business with your rival.

How do you address this problem? One of the largest sources of competitiveness is a customer-needs driven approach. Identifying and satisfying your clients’ needs provides the necessary competitive edge. Therefore, getting the proper BEE documents is not a choice for those companies with such clients who require such evidence. In such a scenario, a company’s competitiveness is based to an extent on its BEE score.

Therefore, how competitive is your business without evidence of its BEE status, in a market where such evidence is held with high regard?

, , , , , ,

No Comments


The importance of Acquiring BBBEE Knowledge

The collapse of BEE deals and the recent notice by the minister of trade and industry on verification is definitely a sign that companies need to acquire knowledge and properly implement BBBEE. “Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives.” (James Madison the fourth president of USA)

Many companies have tended to focus on a quick fix to transformation or on the ownership element leaving the other elements of BBBEE.

All this points to the importance of acquiring BBBEE knowledge. For instance enterprises can earn points by incorporating black women into the mainstream economic development. However a snap shot of the top companies shows management, employment equity and skills development elements still needs improvement. Black women have enhanced recognition through the Adjusted Recognition for Gender calculations. If an enterprise has black women that make up at least 50% of the overall set targets for black people they increase their points on management, employment equity and skills development elements. According to a recent report by the Business Women Association (BWA) in The Star Business report, there is a general increase in the employment of women in top executive positions. The increase is still minimal and not representative of the large pool of women available to take up these positions and black women fill fewer leadership roles.

It is time for companies to arm themselves with the power of BBBEE knowledge. Our conferences/seminars/workshops and the BEE scorecard methodology to help you carry out initiatives that will make you earn the points you deserve and also accurately calculate your points.

, , , , , ,

No Comments


BEE and the Youth

Recently I watched a TV programme that asked the youth to give their views and feelings towards BEE. According to the youth it depends on whether you are black or white. The feelings ranged from BEE being considered unfair to youths since they were not part of the apartheid and to its promotion of discrimination through rewarding others based on race or gender and not merit. There are various arguments for and against BEE, however the important fact is that the economic imbalances in the country need to be addressed.

I believe proper implementation of BEE will positively play an important role in molding the youth who are the future of the nation. It is often said ability is of little account without opportunity. Giving the poor black children the opportunity to go to better schools through socio-economic development or helping young black entrepreneurs through enterprise development certainly breaks the cycle of poverty.

Skills development, which is at the core of BEE, also gives the black young people the opportunity that they would otherwise not have due to poverty or discrimination. Skills development improves the employability of the youth and if companies have well-targeted skills development initiatives and learnerships they will be able to close the skills gap in the long run.

, ,

No Comments


Enterprise Development Opportunities Everywhere

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!

, ,

No Comments


SetPageWidth