Training providers that comply with B-BBEE are all around. If you are a business owner and would like to know more about what the ins and outs are, read further.
What is B-BBEE?
Black Economic Empowerment (BEE) is a government initiative to improve on employment for previously disadvantaged individuals. Disabled employees, black employees, stakeholders and business owners would be treated as equals now.
B-BBEE empowers previously disadvantaged people through “codes of good practice”. It has become compulsory for businesses to have a B-BBEE compliance certificate.
Levels Of B-BBEE compliance, include:
- Exempted Micro Enterprises – these businesses have a yearly income under R10 million.
- Qualifying Small Enterprises – these businesses have a yearly income between R10 and R50 million.
- Medium to Large Enetrprises – these businesses have an income above R50 million each year.
The above distinguishes which turnover compliance level your business falls into and the B-BBEE scorecard you need to refer to from the B-BBEE pillars implemented in your business for compliance. Your business will a level eight contributor status towards level one.
In laymans terms, once your turnover has shown the size of your business, you have a responsibility to according to the scorecard system. This is done through the five pillars of B-BBEE.
What Are The Pillars Of B-BBEE?
These are pillars that contribute toyour B-BBEE score as you implement and include them in your business. The top three pillars are:
- Ownership – 25 percent weighting, referring to black voting rights and shareholding in business through black partnerships an employee trust scheme or joint venture agreement.
- Management – 15 percent weighting and a possible 4 percent bonus for certain criteria. Management control refers to black members at the top and voting rights with control on the executive boards of an enterprise.
- Skills development – is an important aspect of B_BBEE as it provides training for previously disadvantaged South Africans.
Actionis a training provider that offers assistance with such.