B-BBEE, Ownership & how it could benefit your company

THE stigma attached to B-BBEE makes it a hard pill to swallow for businesses that haven’t transformed yet. When legislation suggests a minimum of 10% black ownership within ones business, how can a white owned company reap the long term benefits of BEE?

Things to consider when struggling with the idea of sharing equity:

  • There are strategic black partners who can buy into your business

Someone who can ad value. You dont want someone who is jsut going to throw money into the company and reap the benefits of your hard work. People who can bring in expertise, skills, new business. Help with creating new avenues of income. You dont have to GIVE equity away. But the black partner can buy into a business he considers feassible to invest in.

  • There are equity funders who can support these strategic partners

If you find a black strategic partner who could genuinely add value to you company over and above the competitive advantage, yet they do not have the finances to buy into your company, you can contact an equity funder to assist.

  • It gives you that competitive edge in terms of B-BBEE points obtained in your scorecard.

Having a favourable BEE score or recognition level will increase your chances of being awarded tenders, and job opportunities. Companies with black ownership also benefit by becoming the preferred service provider or supplier to potential clients. Its puts you at an obvious advantage.

 

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