Understanding the BBBEE Scorecard
The classification of your company will affect both your BBBEE scorecard rating and the way you run your business if you work in a sector where BEE plays a role in your workflow.
BBBEE scorecard ratings differ depending on whether your business is an Exempted Micro Enterprise (EME), a Qualifying Small Enterprise (QSE) or a Generic Enterprise. Your business, if not an EME, will be rated against the seven elements of BEE. It’s important to note that Exempt Micro Enterprises still need to obtain a certificate of exemption to verify their BEE compliance.
The seven elements of BEE are: (Direct empowerment): Ownership and Management.
(Indirect empowerment): Employment Equity, Skills Development, Preferential,
Procurement, Enterprise Development and Socio-Economic Development.
Qualifying Small Enterprises are expected to take on four of the seven elements to achieve BEE compliancy. The company is at liberty to choose which four elements to fulfil.
Generic enterprises are expected to adopt all seven of the BEE pillars in order to become compliant. For more information on what a BBBEE scorecard rating is, contact the ESS.
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