Exemption from BEE

Exemption from BEE

There has been increasing concern that small white-owned companies will be disadvantaged by newly gazetted codes of good practice, which now encourages large enterprises to procure from black owned and black women owned companies.

relaxThis could not be less true.

In fact the new scorecard allows for companies to still obtain points for spend with all suppliers that have a good procurement recognition spend. On the 2007 (old) and (2013) new scorecards this is allocated to 12 points. So why not become compliant, irrespective of the black ownership in your business?

With a turnover of R 5 million per annum, you are regarded an Exempt Micro Enterprise or EME.

This is the simplest way of getting complaint as it only requires you to have either a letter from your accountant confirming your EME status because of your turnover or certificate which would cost as little as R590 excl. VAT.

With a turnover between R5 and R35 million, you are classified a Qualifying Small Enterprise  you are allowed to elect 4 elements for your BEE rating.

exempt

This is where most white owned businesses manage to earn 100 points and get rated as a level 1, irrespective of their black ownership or lack thereof.

A large trading entity that has a turnover exceeding R35 million has to comply with all 7 elements of the Generic B-BBEE scorecard. Compliancy is measured from 30 points upwards.

A typical white owned business can become compliant via 4 elements:

1)Socio-economic development (donations to charity)

2) Enterprise development (assistance for black owned firms)

3) Preferential procurement companies earn points depending on the BEE level of their own suppliers and skills development (training of black staff)

4) Employment equity

So engage with a consulting firm today and enjoy the benefits of procurement through compliance.

procurement

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