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15 Points for your BBBEE Status: What the Codes say about Enterprise Development


   

The Broad-Based Black Economic Empowerment (BBBEE) Codes of Good PracticeBEE Codes of Good Practice are functional in the development, evaluation and monitoring of BEE...
Click to read more. provide an incentive to companies to invest in enterprise development, to drive the growth of the SME sector in South Africa.

The enterprise development componentEnterprise Development is a component of the South African government’s broad-based black economic empowerment (BBBEE) initiative intended to drive the transfer of skills from large companies to black-owned SMEs.
Click to Read More of the BBBEE Codes of Good PracticeBEE Codes of Good Practice are functional in the development, evaluation and monitoring of BEE...
Click to read more. is designed to motivate strategies that will increase the number of people who choose to become entrepreneurs, increase the survival rate of small enterprises, and upgrade the level of expertise in this sector.


What the Codes say about Enterprise Development

The Broad-Based Black Economic Empowerment Act of 2003BBEE offers a professional service that is incorporated in all areas of South African workplaces.
Click to read more.,
Section 9 states that (in a nutshell):

  • Companies that spend 3% of their net profit after tax (NPAT) may claim 15 points for their BEE scorecard.

  • The objective of Enterprise Development is to grow sustainable business enterprises that will create jobs and grow the economy.

  • The beneficiaries of Enterprise Development should be companies that are at least 51% black-owned.

  • 20 points may also be achieved through procurement from BEE suppliers.

  • A company will enjoy enhanced recognition for procurement from any supplier which is also simultaneously one of its enterprise development beneficiaries. This will be at a multiple of 1.2.

For example: If the procurement amount spent on a company, which is also an enterprise development beneficiary, equals R100 000, then for procurement measurement purposes, R100 000 x 1.2 = R120 000 which may be claimed on the measured entity’s BEE scorecard.

The challenge for companies

While the principles of the BBBEEBEE Codes of Good Practice are functional in the development, evaluation and monitoring of BEE...
Click to read more. Codes are welcomed by companies that are looking for flexible solutions to the requirements for BEE complianceOn January 6 2004 Government passed into law the Broad-Based Black Economic Empowerment Act, No. 53, 2003.
Click to Read More, the challenge is to find practical and effective ways to meet the terms of compliance, without taking on an onerous burden.

  
 

Raizcorp Kevin Lester 15 points Scorecard“If any large Corporate were to give Raizcorp a substantial amount of money, to build and manage an incubator, that entire cost would count as a contribution towards the company’s BEE Scorecard...”

Only 4 out of every 100 adults in South Africa are, or are likely to be, successful entrepreneurs. Overall business activity (early stage and established) is at 9.9%. But 5.8% of adults in South Africa have sold or closed down businesses over the past year.

Raizcorp believes that entrepreneurs hold the key to unlocking the wealth of the developing world.

Raizcorp has been active in the field of enterprise development in South Africa since 2000. Over this period Raizcorp has become, arguably, the leading provider of enterprise development services in South Africa.

Raizcorp is also the only for-profit, unfunded incubator of its type in Africa.

Raizcorp created the term Prosperator® focusing on creating prosperous entrepreneurs and growing profitable businesses. Raizcorp is renowned for its high-touch, high-impact environment that has produced some spectacular results and has earned it a host of international accolades and awards.
 
 

"At Raizcorp I have learned how I make decisions and the things that are important to me." - Nomvuyo Bengane, Siya Phambile Copy and Print