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Optimising your B-BBEE Scorecard: A cheat sheet

Optimising your B-BBEE scorecard doesn’t have to be a challenge. You just need the right tools, information and advice to unlock the benefits of a B-BBEE strategy that suits your business.

First, are you an exempted business?

If your business is thinking about B-BBEE compliance for the first time, you may not be aware that not all companies need to worry about their B-BBEE scorecard.  If a company’s turnover is less than R10 million per year, the business qualifies as an Exempted Micro Enterprise (EME). EMEs are compliant by default.

However, in order to take advantage of your status as an EME, you need a valid EME BEE Certificate. Under current rules, EMEs manage their own EME BEE certificates via an appropriate affidavit. You can find an EME affidavit template here.

What’s on the B-BBEE scorecard, anyway? (And why that’s only half the story!)

The B-BBEE scorecard is divided into five basic criteria:

  • Ownership
  • Management Control
  • Skills Development
  • Enterprise & Supplier Development (ESD)
  • Socio-economic Development (SED)

Note that each element has a different weighting. For instance, ESD consists of 42 points on the scorecard, whereas Ownership comprises 25 points.

However, it is also important to recognise that optimising a company’s B-BBEE scorecard is not simply a question of appreciating the various scorecard weightings. At the same time, optimal scorecard management takes into account which elements of the scorecard a business can most effectively realise and what will bring the most benefit to the business.

In other words, don’t approach your B-BBEE scorecard simply as a dry bureaucratic exercise.

It pays to think carefully about how your company’s resources can best be used to get maximum results.

Check your sector

Some industries have adopted special B-BBEE guidelines designed to address the unique challenges of their sectors. For example, there are specialised codes for the tourism, advertising and automotive industries. To ensure you fully optimise your B-BBEE scorecard, ensure you are informed of any special codes that apply to your business.

Level up

Sometimes you need to think outside the scorecard box. For example you can move up two levels on your B-BBEE scorecard by successfully implementing a Youth Employment Service (YES) programme. YES is more than an excellent opportunity to optimise your scorecard: it’s a vital social initiative designed to address the problem of youth unemployment. 

A supplier directory is a game-changer

Ensuring you procure goods and services from B-BBEE compliant businesses is an effective way to secure B-BBEE points while supporting SMMEs.

But how do you identify eligible suppliers? And how on earth do you access their BEE certificates?

It’s an administrative nightmare. At least it is unless you have a comprehensive B-BBEE Supplier Directory, with BEE certificates already listed. With a directory of suppliers just a click away, procurement optimisation can be astonishingly simple.  

Automation is your B-BBEE secret weapon

Once you understand how your business fits into the broader B-BBEElandscape, it’s time to knuckle down and calculate those scores. Traditionally, however, calculating your B-BBEE scorecard is an extremely time-consuming process, involving a host of input and confusing calculations.

Fortunately, there has been a paradigm shift in B-BBEE compliance. B-BBEE Management Software automates the whole process, provides invaluable strategic insights and slashes the time spent on calculating scores.

Find a good B-BBEE partner

BEE123 provides word-class B-BBEE compliance software that makes optimising your scorecard much more effective. Every BEE123 client also gets personalised tech support and specialist B-BBEE advice. We carefully assess your business, and ensure you take advantage of B-BBEE opportunities that fit your company. It’s a more efficient way to optimise your B-BBEE scorecard – and to ensure you achieve your strategic business goals.

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