Why a small business needs a B-BBEE certificate
Over the years, the National Small Business Chamber has received numerous B-BBEE-related queries. This influx of queries thus prompted Mike Anderson, founder and chairman of the NSBC, to meet face to face with NSBC's partners in this field - EMEX; one of SAs leading B-BBEE verification agencies. The conclusions of said meeting are discussed in this article.
Is your turnover under R10 million? If so, would you need to get a broad-based black economic empowerment (B-BBEE) Certificate and what would the benefits of such a certificate be to your organisation?
Should Your Small Business Receive A B-BBEE Certificate?
Personal experience allows me to communicate a straight forward conclusion on this topic and must-do exercise: B-BBEE compliance for smaller businesses is simple and imperative.
If your annual turnover is less than R10 million, then your organisation qualifies as an Exempted Micro Enterprise (EME) and will automatically obtain a Level Four (100% B-BBEE compliance recognition) status. Should your organisation be more than 50% black owned, and you are able to provide proof of this, then you can obtain a Level Two or even One (125% to 135% compliance recognition) status.
It is important to notice, however, that this threshold figure (turnover amount) might change depending on which sector your organisation falls into. To date, the various Sector Codes that have been gazetted are: Codes of Good Practice, Forestry, Transport, Construction, Tourism, Charted Accounting, Agriculture, Financial, Information and Communication Technology, Property, and Marketing, Advertising and Communication.
If you are wondering whether you must have a B-BBEE Certificate in order to run your organisation successfully, then the short answer is no. But, making the decision to get your B-BBEE Certificate might just benefit your organisation and give you the competitive edge you need to move into the next level of your organisation's strategy.
What Are The Benefits In Receiving A B-BBEE Certificate?
It provides a competitive edge independent of your organisation's size;
Large companies are encouraged to invest in smaller companies, like yours, should you be compliant;
Your organisation assists in unemployment and poverty in the long term;
Your organisation will be able to apply for tenders; and
You will be able to showcase your B-BBEE level in your marketing material.
Become compliant, it's the right thing to do and it will also open the door for new opportunities.
Mike Anderson is a passionate entrepreneur focused entirely on helping small business owners to stay in business and achieve success beyond the norm. He does this in his role as founder and chairman of the National Small Business Chamber (NSBC) – South Africa’s largest small business organisation. Anderson has started a number of successful businesses, acquired existing businesses, been taken over by an international organization and reached the top of his game.