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The term BEE, brief for BBBEE, or Broad-Based Black Economic Empowerment, is often tossed about in business circles -- without a proper comprehension of what it is about. BBBEE has become a small bogeyman, with misconceptions, concern and hesitation abounding in talks about it. However, BBBEE is, overall, an extremely positive social initiative which may benefit everyone -- not only, as is frequently presumed, a small business of society. Good consulting services can go a long way towards dispelling the myths and confusion which surround the coverages, and help you to get the maximum out of them.
BBBEE policies are put from the BBBEE Act (No. 53 of 2003) and bolstered by the Codes of Good Practice, which were revised in 2015. The underlying aim of this legislation has always been to effect positive transformation from the company world and greater culture, addressing the legacy of apartheid and skills training centre enabling greater black economic participation. In contrast to popular belief, it is not compulsory for a business to acquire a BBBEE certificate -- it is an entirely voluntary procedure.
For one thing, it usually means that you and your company are doing your part for conversion -- and this can really be added into your marketing stuff, as it produces a fantastic impression. It shows that you care and are dedicated to change.
Another advantage -- in fact, perhaps the biggest advantage, of having a BBBEE certification is being able to conduct business with the government sector, such as municipalities, in addition to public entities. A certificate permits a company to tender -- opening new possibilities for work.
A further advantage of owning a BBBEE certification is having a significantly higher prospect of securing contracts with big businesses, because they are encouraged to do business with smaller BBBEE-compliant companies. A certificate also, crucially, permits you to participate as a supplier in the lucrative chain of preferential procurement.
With all the advantages that a business stands to profit from BBBEE compliance, you might wonder why not everybody is on board. The main reason is that the legislation can be a bit of a minefield to navigate. The most thought can create stress and be offputting for several companies. The updates to the legislation last year made matters much stricter and led to changes in requirements and categories for the scorecard -- most of which can seem intimidatingly complicated.
When calculating the BBBEE scorecard, which includes eight amounts rated in order of excellence from one , a thorough understanding of the legislative requirements is essential. While small companies in the form of Exempt Micro Enterprises (EMEs), also, to an extent, Qualifying Small Enterprises (QSEs) -- both of which can be categorised according to their annual turnover, might not have to present much in the way of supporting documentation, larger businesses are forced to demonstrate all sorts of items.
To make the most of the benefits of a BBBEE scorecard in the easiest way possible, and to acquire a thorough understanding of the laws and how it all works, BBBEE consulting services are highly suggested. They make the procedure much easier and hassle-free.

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