on how one can make the most of the BBBEE
policy.
Both the Act and the Codes can be downloaded for free from www.thedti.gov.za.
Compliance with the BBBEE should be at the
top of the agenda for any business that is intentional about growth and empowerment.
“The code”
BBBEE is not a “one size fits all” policy; one
has to meet specific requirements to benefit
from the policy. The Codes of Good Practice enlist what it takes for one to become
compliant in the form of a BBBEE scorecard.
This scoring is based on seven key features of
a business, that is: ownership, management
and control, employment equity, skills development, preferential procurement, enterprise development and social economic
development.
Cracking “the code”
The above-mentioned seven business features are the codes that, when put together, make up the BBBEE scorecard as summarised here below:
• Code 000: Outlines the general
principles of BBBEE, including the generic
scorecard and framework for measurement.
• Code 100:
Measures the level of
black ownership of a business. This counts
20 points + 3 bonus.
• Code 200:
Measures the level
of black management and control of a
business. This counts 10 points + 1 bonus.
• Code 300: Outlines general principles for measuring employment equity
in the workplace. This counts 15 points +
3 bonus.
• Code 400: Measures the extent
to which employers develop the skills
and competencies of black people. This
counts 15 points.
• Code 500:
Measures the level
of goods and services that a business
buys from BBBEE-compliant suppliers. This
counts 20 points.
• Code 600: Measures a business’s
contribution to enterprise development.
This counts 15 points.
• Code 700: Measures the extent
to which a business promotes access
to the economy for black people and
contributes to socio-economic development. This counts 5 points.
• Code 800: Contains the general
principles for measuring qualifying small
enterprises (QSEs) in all aspects of the
scorecard.
It can be harder for small businesses to
equally compete with the big fish on the
same level playing field. The more established business, with its resources, will certainly outmuscle the small businesses in the pursuit of BBBEE compliance. To this effect then,
the Codes have provided for two different
ways of solving this imbalance:
Exempted Micro Enterprises (EME’s)
This, by definition, is any business with a revenue of less than R5 million per annum. In
terms of the Codes, these businesses are
automatically considered as Level 4 BBBEE
contributors. They do not have to complete
the scorecard; all they have to do is prove
that their annual revenues are below R 5 million. Now here is even better news, if you are
black-owned EMEs you will be regarded automatically as a Level 3 BBBEE contributor.