BEE Score

Improving the BEE Score Through Enterprise Development

 

Enterprise Development plays an important role in the BEE score of a company. It is about business to black business transactions with the focus on the provision of contributions that can help black businesses in operations and development towards sustainability.

In terms of BEE, it is important to understand what is seen as a black business for the purpose of enterprise development. A black business is a 50% black-owned business and has a positive multiplier of 1,25 to the contributions. In this instance, it is either a Qualifying Small Enterprise or it is an Exempt Micro Enterprise.

A black business, for the purpose of enterprise development related to the BEE score of a company, is also defined as a 50% black-owned business that is Generic or a 25% black-owned business with a BEE certificate (Level 2-5).

 

Contributions

When it comes to the BEE Codes of Good Practice Enterprise Development Matrix, enterprise development contributions can take several forms, including knowledge transfer, loans, operating cash flow, technical assistance, and investments. It is important for the purpose of improving the contributing company’s BEE score that all contributions that are made fall within the framework of the Enterprise Development Matrix. Each of the contributions has a specific weighting.

Keep in mind that enterprise and supplier development initiatives, as related to BEE, should be addressed in phases. The first phase is that of entrepreneur engagement, where the beneficiaries are identified, followed by the due diligence phase, in which the business needs and BEE credentials of the beneficiaries are confirmed. It includes an analysis, as well as a project plan, and getting the required documentation in place. The third phase entails the actual development programmes in which the beneficiaries receive the contributions to ensure sustainability of their business operations.

 

Supporting Documentation

In order to improve the contributing company’s BEE score and make claims for verification, the contributing company must have valid supporting documentation to the effect. The first step in the process is to draft an Enterprise Development agreement between the contributing company and the black business that benefits from the contributions.

The documentation required includes the copy of the development agreement, verification certificate of the beneficiary (if it is not a category A or EME beneficiary), proof of annual turnover (if it is an EME beneficiary), scorecard of the enterprise development beneficiary company, financial substantiation of the expenses, and if expert advice is given, then a signed letter from the beneficiary company regarding the nature of expertise provided must also be submitted. Various other supportive documents must be submitted. We assist clients in getting the required agreement in place, finding suitable suppliers and enterprises to benefit, and to get the required documentation.

 

Where to Get Help

It is essential to ensure that the correct procedures are followed if your company is to improve their BEE score through enterprise development contributions. We assist in the above through coaching, implementation of development programmes, and the analysis of your firm’s supplier database. We identify and enable relevant procurement opportunities through partnerships and joint ventures. In addition, we help to improve the knowledge base and to ensure the quality of services.