Is your turnover under R10 million? If so, would you need to acquire a broad-based black economic empowerment (B-BBEE) Certificate and what would the advantages of such a certificate be to your establishment?
- If your annual turnover is less than R10 million, then your establishment qualifies as an Exempted Micro Enterprise (EME) and will routinely obtain a Level 4 (100% B-BBEE compliance recognition) status. Should your organisation be more than 50% black owned, and you are able to make available proof of this, then you can obtain a Level 2 or even 1 (125% to 135% compliance recognition) status. It is imperative to notice, however, that this threshold figure (turnover amount) might change depending on which sector your business falls into. To date, the various Sector Codes that have been published are Codes of Good Practice, Forestry, Transport, Construction, Tourism and Charted Accounting.
If you are speculating whether you must have a B-BBEE Certificate in order to run your business 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 require to move into the next level of your business’s strategy.
What are the benefits of receiving a B-BBEE Certificate?
- It delivers a competitive edge free of your organisation’s size,
- Large businesses are encouraged to invest in smaller businesses, like yours, should you be compliant,
- Your establishment assists in unemployment and poverty in the long term,
- Your business will be able to apply for tenders.
- You will be able to use to your advantage your B-BBEE level in your marketing material.
Becoming B-BEE compliant can only be beneficial for your small enterprise. Visit us today and find out more on how we can help your business achieve this.