BBBEE Scorecard
What is Broad-Based Black Economic Empowerment (BBBEE)?
It is a process of assisting and encouraging previously disadvantaged entrepreneurs to participate in the economy development. BEE Act, No 53, 2003 entails Codes of Good Practice. These Codes contain a framework for determining BEE, including the generic scorecard, guidelines and BEE agencies, as well as how different parts of the scorecard are to be measured in companies.
What is a BEE Scorecard?
The BEE Score card system is an online system that calculates and reports your contribution towards BEE and it applies DTI's Codes of good practice to your input data and provides status of your business. The BEE Scorecard is an essential element towards the success of your business. The key to this success lies in the number of BEE points you are able to earn during your BEE Rating.
The system also provides a printable version of your BEE Scorecard, which you can distribute freely. The system also produces a printable Fact Sheet that allows an Auditor to verify the input data utilized by the system to calculate the BBBEE Score and-Status
Who qualifies for BEE?
Only business enterprises (those classified as 'Exempted Micro Enterprises') with an annual turnover of R5 Million and less will be exempted. Such entities will automatically be recognized as Level Four BBBEE Contributors with a procurement recognition level of 100%.
Start-up enterprises are Exempted Micro-Enterprises for the first year following their formation or incorporation regardless of their expected revenue. Tendering for contracts above R5 million does require Scorecard submission.
Businesses that are not exempt fall into one of two categories:
i) Those with an annual turnover between R5 Million and R35 Million are measured under the Qualifying Small Enterprises ('QSE') codes.
ii) Those with a turnover of R35 Million and above are measured under the generic scorecard codes. Cited: BEE-scorecard, 2010.
Although there are no financial penalties applying to non BEE compliant businesses, the system ensures that procurement managers and buyers favourers businesses that are compliant since it enhances their own BEE Scorecard under the Preferential Procurement element provisions.
For BEE Scorecard, click here.
Links:
Updated: 29 August 2011
by Zanele Matshotyana
