Frequently asked questions

What Implications do the B-BBEE codes have on my business?


The Amended B-BBEE Codes of Good Practice came into effect on 1 May 2013. Three priority elements were identified with minimum requirements, they are: 1. Ownership 2. Enterprise and Supplier Development 3. Skills Development Businesses are required to spend 1% or 2% of their net profit after tax (NPAT) on Enterprise or Supplier Development programmes respectively. Should a QSE-Qualifying Small Enterprise (turnover of less than R50 mil) or generic business (turnover of more than R50 mil) not achieve a subminimum of 40% for enterprise development, their B-BBEE score will be discounted by one level.




What are the benefits of B-BBEE compliance?


1. If you want to do business with Government your business will have to be 100% compliant to: a. apply for a tender b. purchase a state-owned asset c. enter a public-private partnership 2. Private companies that do business with each other will also benefit from being compliant through preferential procurement. Larger businesses are incentivised to do business with you because it improves their own B-BBEE score. 3. Being compliant means you will not miss out on prospective business from companies wanting to deal with only compliant companies allowing you to gain a competitive advantage over non-compliant companies.




What is an ED and ESD programme?


Small businesses are critical to the South African economy. They account for 52% of the country's GDP, contribute millions in tax revenue and offer a possible solution to the unemployment crisis by creating jobs. However, 80% of start-ups fail in the first three years and this is largely due to a lack of support. The survival rate of a start-up is increased by an ‘incubation’ process, which assists small businesses in becoming sustainable over time. An Enterprise Development programme aims to transfer skills, knowledge, experience, wealth and support to small and medium black businesses which will ultimately lead to job creation and sustainable long-term economic growth. Your company’s Enterprise and Supplier Development spend can be used to achieve this through an Enterprise Development programme comprising financial and non-financial support. A Supplier Development programme offers Enterprise Development support to one of your existing or new suppliers. A favourable objective of an Enterprise Development programme would be to graduate the small business to become a supplier but note that any money spent on Enterprise Development cannot be claimed simultaneously as Supplier Development.




I'm a B-BBEE consultant how can we work together?


We work closely with a number of top consultants around the country to implement Enterprise, Supplier and Socio-Economic Development Programmes on behalf of their clients. The services we offer are: - Source SME's - Conduct SME Needs Analysis - Develop Customised ED and ESD programmes - Coaching and Mentoring - Enterprise and Supplier Development Agreements - Procurement of Assets for SME's - Deliver Business Services to the SME's - Submission of Feedback and Impact Reports - Submission of Audit File for Verification Purposes Contact us today for a meeting to discuss further.




What is Socio-Economic Development (SED)?





How can you help if our company wants to implement an ED or ESD programme in-house?


We can advise and assist with all delivery and documentation required to implement your Enterprise and Supplier Development programme in-house. Our services include: - Consultation - Verification Documentation - Project Management of Programmes - Delivery of Business Development Support Services For more information contact us.




What ED and ESD Implementation Services do you offer to Corporate Companies?


We offer the following Services: - Source SME's - Conduct SME Needs Analysis - Develop Customised ED and ESD programmes - Coaching and Mentoring - Enterprise and Supplier Development Agreements - Procurement of Assets for SME's - Deliver Business Services to the SME's - Submission of Feedback and Impact Reports - Submission of Audit File for Verification Purposes Click here for more information.




What SED programmes do you offer?


We have identified Entrepreneurship Development as a critical socio-economic development imperative in South Africa. We therefore deliver small business start-up, sustainability and growth programmes to unemployed youth in township and rural area's. We have access to a portfolio of programmes directed at entrepreneurship and small business development that have been successfully applied since 1994. Many of the programmes built on the pioneering work of Mr. Ian Clark over his 15 years as the Director of the Wits Centre for Developing Business. ‘Give Yourself a Job’ is a mobile unit of AIF which encourages and supports unemployed and underemployed youth (18-35) in township and rural areas, working together, to identify and access viable, sustainable, low-barrier opportunities to give themselves a job. Click here for more information.





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