The amended BBBEE codes of good practice reveal that more points can be earned through enterprise development and supplier development. Companies can score 40 points on the BBBEE scorecard for enterprise and supplier development and 30 points on qualifying small enterprise (QSE). The sub sections of ESD are preferential procurement, supplier development and enterprise development which makes it easier for points to be scored as businesses can choose which element of the subsection they think would best benefit their company taking into consideration the available resources.
Preferential procurement measures how a company purchases goods from suppliers who are BEE compliant as it is a system where government tenders are awarded based on a selection system that gives preference to disadvantaged individuals. While supplier development assists in growing suppliers from your database, enterprise development assists businesses that are not on a database of a business.
Enterprise and supplier development is about growing existing businesses, new and small businesses with more than 51% black owners and a turnover that is less than 50 million per year. In order to earn points for SD you need to spend 2% of your net profit after tax per annum on supplier development and 1% of your net profit after tax on enterprise development. You can earn your ESD points by supplying goods to the Sparrow Schools including printing service, computers for the IT class, stationery and other relevant resources.
Source from SEESA, BEESA, SA-tenders
As the rate of unemployed graduates increases every year, skill development programmes help to reduce the rate by offering students with specific skills training that are highly demanded in the job market. The programmes also inspire an entrepreneurial mindset which will have a positive impact on the country’s economy and communities when the students open their own businesses. To help companies increase their BEE score card, they can invest in different kinds of skills development training including internships, school bursaries and learnerships. When investing in a skills development programme a company will be credited with 25 points on the BEE score card. With the #feesmustfall movement creating a disruption in tertiary institutions, companies need to spend money on skills development programmes to have a good reputation on their employment equity profile.
The Labour Relations Act 66 of 1995, states that no one should be discriminated in the workplace or while looking for a job according to their race, gender or social background. At Sparrow FET College we provide you with a solution that benefits your scorecard and your company image, which will result in repeated business. Sparrow FET College provides 12 months learnerships and 6 months skills development programmes. A company can either fund a student to study, pay for their school bursary or employ a student to gain workplace experience and grow within the company. Join Sparrow Schools FET in reducing the unemployment rate while increasing your BEE score card. #EducateAchild
Sourced from Cores and Econobee