While some business owners are scared off by B-BBEE jargon it is a rather simple government policy. B-BBEE or more specifically Broad-Based Black Economic Empowerment refers to the process by which the government is trying to ensure economic equity amongst race groups. Many times, the question arises Is B-BBBEE compulsory?. The answer to this is an absolute no. It is also important to note that BEE is not forced upon any business by law but is highly recommended. This is a topic that normally leave business owners feeling a bit pressured to get verified, while in the same breath wondering how it will help their business – and how they could begin to go about it. BBBEE verification can seem like a long, challenging process – leaving many asking, is it even worth it? The answer is a Definite yes. The BBBEE verification process involves getting a rating from one to eight on a scorecard, with one being the highest level of BBBEE compliance, and therefore the most desirable for businesses. The closer to one your rating, the more advantages you have. BBBEE verification has multiple benefits for businesses, these benefits include but are not exclusive to:
- One of the biggest benefits of BBBEE verification is the ability to conduct business with government sectors, including municipalities, and public entities. Having a BBBEE scorecard allows you to tender, and the better your rating, the better your chances of being awarded a lucrative contract. B–BBEE opens up new opportunities for revenue and collaboration.
- Another way in which your business benefits from B-BBEE verification is by increasing your chances of obtaining contracts with large companies and major players in industry. The movers and shakers are strongly encouraged to do business with smaller B–BBEE-compliant companies, as it benefits them and their ratings too. Having a good B–BBEE score also allows companies to establish themselves in lines of preferential procurement.
- Being B-BBEE compliant means, you will not miss out on prospective business from companies wanting to deal with only B-BBEE compliant companies this ultimately means you gain a lot more business from your non-compliant competitors.
In the above-mentioned ways, a B–BBEE certificate does not only offer economic benefits, however. It makes a very good impression, indicating to your clients and business partners that you are committed to transformation in South African society. There is a lot of confusion around the purpose of B–BBEE initiatives, but at the end of the day they are focused on effecting greater economic equality to the benefit of all South Africans. Your B–BBEE rating can be leveraged in company promotional and marketing materials, as it shows that you are a responsible corporate citizen. In addition, becoming B–BBEE-compliant may encourage businesses you work with to do the same – thereby moving the country closer to achieving the goals of B–BBEE.
B=BBEE certification can only bolster your business. It is useful for enterprises of all sizes, even the smallest ones – Exempt Micro Enterprises (EMEs). Business owners may cite the difficulty of the verification process as a prohibitive factor in getting a certificate, but if BBBEE verification is done through an accredited verification agency with the requisite experience and expertise, this can be made smooth and fuss-free.
For more information on how BBBEE verification can help your business and how you can get verified, speak to one of our resident experts. Marketing@cenfed.co.za