BEE in 2007 for small businesses
by Fred on 30/01/07 at 10:48 pm
3 comments
I get an online newsletter from an old friend, Claire Stewart, who runs a HR consulting company from Berea in Durban. Her previous mail gave us some pretty good news:
The hot news for January is that the long awaited guidelines for the BEE codes were released by the Department of Trade and Industry on the 14th December 2006. Possibly the most exciting amendments contained in the guidelines bring relief for SMME’s.
Businesses with annual turnovers of less than R5 million are exempt from BEE and are automatically deemed to be level 4 contributors. If your organisation falls into this category in essence this means that your clients can count 100% of their spend on your organisation in the Procurement Pillar of their BEE Scorecard- a very good state of affairs.
Businesses with an annual turnover of between R5 million and R35 million can now select 4 out of the 7 pillars of BEE when calculating their BEE Scorecard and each pillar counts for 25 points- in essence this means that black ownership becomes far less pressing.
Basically, this means that the big guys can now safely consider more businesses for their tenders without stressing about BEE legislation. Great news for all of us small fry, black or white, who couldn’t afford the legal fees of getting proper BEE status.
PS: If you want to join Claire’s mailing list, contact her at cstewart[at]people-wise.co.za. PeopleWise keeps us up to date with important legislation and HR matters – all the stuff we need to know, but is way too boring to look up ourselves… Claire makes it easy for us to keep tabs on it.
Fred Roed is the marketing guy in the Ideate crew. He runs a web marketing company called World Wide Creative and loves writing about people out there doing marketing right. View more articles by Fred.
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Stii
Jan 31st, 2007
Interesting… Our company are a 3 man show and we don’t employ ANYBODY. We definitely don’t turn R5 million a year!
Yet, we tried to get some sponsorship from Vodacom and they would not even talk to us, due to the fact that we were not BEE compliant enough according to them.
Mind you this was end of November last year. Maybe we can try again…
Claire
Feb 2nd, 2007
Hi Stii,
Definately try again but give it a little while. Many companies don’t know about the final version of the BEE Codes of Good Practice yet. You can refer them to the Department of Trade and Industry website to read a summary of the new Codes, its a pdf file so you can also forward it to them- http://www.dti.gov.za, Info regarding SMME’s starts from page 35 of the summary.
RT Swart
Jan 21st, 2008
This information that i never know.
Thanks