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Thread: Companies looking to score BBBEE Points

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    Companies looking to score BBBEE Points

    Hi everyone

    We are urgently looking for companies that are interested in acquiring BBBEE score card points through Enterprise Development and Preferential Procurement. Companies can score points on the BBBEE score card by supporting predominantly black owned companies.

    In the BBBEE score card there are 7 elements that private companies can use in order to contribute toward BBBEE, and the most rewarding of these 7 elements (except for the ownership element) in the BBBEE score card is:

    Enterprise Development (ED) which weighs about 15 points

    Through Enterprise Development, companies can invest 3% of their Net Profit After Tax (NPAT) to qualifying smme companies in order to gain the 15 points for Enterprise Development.

    And

    Preferential Procurement which weighs about 20 points.

    Preferential Procurement is dependent on the BEE scores of the measured company's suppliers. This means that the higher a supplier’s BEE Score, the more they will count towards the measured company's Preferential Procurement score points.

    We have developed programmes that are aimed at providing capacity to smme and employment to vast of the unemployed graduates.


    If one looks at a department of a fully functional corporate company, Finance department for an example, it will have a fully-running Finance department with dedicated Finance Directors, Financial Controllers, Management Accountants, Accounts Assistants for managing the more routine sales and purchase ledger tasks and Credit Controllers etc.

    It is therefore in this regard that our programmes ensures that smmes are well capacitated to employ the professional (unemployed graduates) skills normally available to large companies.

    Our programmme ensures that for every smme benefiting through Enterprise Development and/or Preferential Procurement, there would be a minimum of 4 direct jobs created for the unemployed graduates and a minimum of 12 students mentored through their professional careers.

    For more information on our programmes, please don't hesitate to contact us, and we are looking forward to hearing from interested parties.

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    Site Caretaker Dave A's Avatar
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    Actually there is something I'd like you to expand on from your post (particularly bearing in mind this is posted in the business finance forum rather than the BEE forum) -

    Quote Originally Posted by ujembe View Post
    Through Enterprise Development, companies can invest 3% of their Net Profit After Tax (NPAT) to qualifying smme companies in order to gain the 15 points for Enterprise Development.
    When you say "invest", do you mean "acquire shares"?

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    Dave, thank you for your response

    Quote Originally Posted by Dave A View Post
    When you say "invest", do you mean "acquire shares"?
    acquiring shares would not fall under 'Enterprise development", but would fall under "Management" and "Ownership Control" in the BBBEE score card

    In order to earn the 15 point allocated for Enterprise Development, Companies can:

    Offer grants to smme companies
    Invest directly into the smme companies
    Provide seed capital
    Provide collateral on behalf of the smme companies to access finance
    Provide imfrastructure support to smme companies
    Provide non financial support to smme companies, etc


    thank you again Dave for showing interest, and we are looking forward to hear from companies who require smme companies or smme programmes to invest in.

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    Site Caretaker Dave A's Avatar
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    So in BEE lingo "invest" means something different to what it means in the normal course of business, just like the word "equity".

    Frankly, I find it pretty confusing.

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    Quote Originally Posted by Dave A View Post
    So in BEE lingo "invest" means something different to what it means in the normal course of business, just like the word "equity".

    Frankly, I find it pretty confusing.
    Dave, although I'm not a BBBEE expect to to know why the word "invest" has been used in this context, but my understanding would be that like any kind of investment in normal business transaction there would be some kind of return on investmen, as in this case the. BBBEE Enterprise Development score card point = 15

    Therefore companies are rewarded (ROI) with these point to get a higher grading/rating on the BBBEE score card. Surely the benefits of having the higher. BBBEE score card rating are well known

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    Platinum Member desA's Avatar
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    The whole BBBEE concept is ridiculous. To now use an immoral law as a means to (continue to) enrich others, seems incredible. Yet another scam in a golden fleece.
    In search of South African Technology Nuggets(R), for sale & trading in South East Asia.

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    Quote Originally Posted by desA View Post
    The whole BBBEE concept is ridiculous. To now use an immoral law as a means to (continue to) enrich others, seems incredible. Yet another scam in a golden fleece.
    I really don't see how immoral the BBBEE concept is especially when it comes to Enterprise Development and Preferential Procurement elements, as no one is compelled to contribute towards BBBEE if they don't see the need to, and who gets enriched, is it the investor or the beneficiary.

    We have programmes that are aimed at creating a minimum of 4 permanent jobs for graduates for every smme company that receives investment, meaning,if 100 smme benefit from our programmes, there would be a minimum of 400 direct jobs created.

    Therefore I don't see how immoral and selfish BBBEE could be when hundreds of the unemployed graduates could benefit through BBBE

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    Quote Originally Posted by ujembe View Post
    Dave, although I'm not a BBBEE expect to to know why the word "invest" has been used in this context, but my understanding would be that like any kind of investment in normal business transaction there would be some kind of return on investmen, as in this case the. BBBEE Enterprise Development score card point = 15

    Therefore companies are rewarded (ROI) with these point to get a higher grading/rating on the BBBEE score card.
    So the normal business lingo for "invest directly into SMME companies" would be "buy BEE points" then.

    Quote Originally Posted by ujembe View Post
    Surely the benefits of having the higher. BBBEE score card rating are well known
    How cynical do you want me to be?

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    Ujembe. I think you misrepresent the ED scenario here, Enterprise Development Contributions are not an "investment" as the contributor will not get any shareholding on returns.
    ED's objective is assisting or accelerating the development, sustainability and ultimate financial independence of the beneficiary.
    This is commonly accomplished through the following, amongst others:
    1) Early payment/ settlement of invoices - therefore improvinf cashflows of the beneficiary
    2) Discounts
    3) Grants

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    Quote Originally Posted by SSS100 View Post
    Ujembe. I think you misrepresent the ED scenario here, Enterprise Development Contributions are not an "investment" as the contributor will not get any shareholding on returns.
    Like I mentioned on my previuos responce to "Dave", "acquiring shares would not fall under 'Enterprise development", but would fall under "Management" and "Ownership Control" in the BBBEE score card" and like I said I'm not a BBBEE guru, but the word "invest" (in some cases the "contribute" is used) is used to refer to companies that "contribute" ("invest" sometimes is used) the 3% of their NPAT to "Gain" (which could be interpreted as a "ROI" the 15 points on the BBBEE score card

    Quote Originally Posted by SSS100 View Post
    ED's objective is assisting or accelerating the development, sustainability and ultimate financial independence of the beneficiary.
    This is commonly accomplished through the following, amongst others:
    1) Early payment/ settlement of invoices - therefore improvinf cashflows of the beneficiary
    2) Discounts
    3) Grants
    Yes, these are some of the objectives of ED which are amongst others that I mentioned previously, which are:

    Offer grants to smme companies
    Invest directly into the smme companies
    Provide seed capital
    Provide collateral on behalf of the smme companies to access finance
    Provide imfrastructure support to smme companies
    Provide non financial support to smme companies, etc

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