Broad Based Black Economic Empowerment (B-BBEE) is a very common term and expression in South Africa. B-BBEE is a significant strategic issue, challenge, threat and potential opportunity facing businesses of all sizes, structures and shapes in South Africa today. B-BBEE requires a business to ensure that it measures and has certified its B-BBEE status based on the Amended Codes of Good Practice. For Small Medium Enterprises, it’s important to know how to survive and thrive. Below are some tips which can help you in this regard.
Analyse the codes – First step is to analyse the codes and what they mean to your business.
Develop a plan for each code – Whether its in the short term or long term, you must remember that the three priority areas are ownership, skills development, enterprise and supplier development.
Evaluate the trade off – This concerns the ownership pillar.The question that must always be asked is, is the cost of becoming compliant to the ownership pillar worth more or less than the business potential?
Be aware – Take note of the resources available to you as a small business owner.There is financial and non financial support available as long as you leverage these programmes.
Understand – You need to understand that large corporates have an even greater amount of pressure put on them to support and grow the SME sector.Your market is no longer just other businesses, but through these codes large corporates are ready to do business with you.
It is important that SMEs embrace these Broad Based Black Economic Empowerment (B-BBEE) codes because they assist Small Medium Enterprises (SME’s) in being seen in good business standing and gaining access to new corporate markets.