Why a small business needs a B-BBEE certificate
Content provided by a guest contributor.
Over three hundred B-BBEE related queries received by the NSBC over the past month encouraged me to meet face to face with our partners in this field - EMEX; one of SAs leading B-BBEE verification agencies.
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.
Let's take a look at this:
Is your turnover under R5 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?
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 4 (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 2 or even 1 (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 and Charted Accounting.
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 beyond the norm. This he does as founder and chairman of the National Small Business Chamber (NSBC) –