BBBEE or Broad Based Black Economic Empowerment is fast becoming a business imperative, says EconoBEE
, so the changes affect more businesses than ever before.
But it's actually easy for your business to qualify for a BBBEE certificate at the moment.
explains that if your business turnover is less than R5 million per year and you've been in business for less than a year, you automatically qualify for a Level 4 BBBEE certificate.
And if your percentage of black shareholders is above 50%, you automatically qualify for a Level 3 BBBEE certificate, adds FSPBusiness
Now, things are about to get a little tougher when it comes to BBBEE.
Customers and the Department of Trade and Industry alike are making it harder to hold onto your BBBEE certificate level…
For example, the seventh annual KPMG Black Economic Empowerment (BEE) Survey shows that customers expect businesses to have a Level 4 BBBEE certificate as a minimum to do business with them.
Added to this, the department of trade and industry has indicated that it intends gazetting the revised codes of good practice as early as June 2013, says Fin24.
If this happens, your business will have a 12-month transitional period to comply with the changes... which are expected lower most companies' BBBEE ratings.
For example, the proposed changes to the BBBEE codes of good practice have procurement experts estimating that companies without black ownership will drop at least four status levels, says FSPBusiness.
That's because Black Economic Empowerment or BEE in its current format is seen as not achieving its true objectives, adds Fin24.
Revealed: One of the best ways to add points to your BEE scorecard ahead of the proposed BBBEE changes
If you're worried about this, don't forget that skills development alone contributes 20 points to the scorecard, depending on the level of investment in skills development as a percentage of payroll, as well as people employed through learnerships and internships, says FSP Business.
It's a great way to make sure you have as many BBBEE points in your favour ahead of the proposed changes that could see your BBBEE status dropping drastically to ensure true transformation.