Entreprise Development, BBBEE Scorecard improved with The Business Place

Enterprise Development

Improve your BEE scorecard

Compliance with the Broad-Based Black Economic Empowerment (BBBEE) Act Codes of Good Practice scorecard has become a major influence on the way South African's do business. This Act, which aims to increase black participation in South African business, has developed and grown to encompass every part of a business's make up. It is no longer about doing ownership deals, but rather about meeting all prescribed requirements simultaneously. In short, this broad-based approach is a better way to judge the transformation of the South African economy and gauge the commitment of businesses to responsible citizenship.

Businesses benefit by being more responsible and active citizens and so are moving away from straight forward "cheque hand-overs" to more impact-related initiatives. The Grant Thornton International Business Report of 2008 reported that when asked to rate how important each element of the broad-based BEE Scorecard is to their business, respondents answered that there had been an increase in focus on Socio-Economic Development (SED, also called Corporate Social Investment or CSI) by 7% and Enterprise Development (ED) by 2%, respectively.

Since this report was published, The Business Place has noted a marked increase in businesses focusing on Enterprise Development. Currently, Socio-Economic Development and Enterprise Development and their respective weightings on the scorecard, are elements that can be harnessed by businesses to improve their rating. The Business Place can provide the scoring opportunities for these elements.

Please see the following pages to see how businesses can become involved in these initiatives: Investing in Enterprise Development and Investing in Socio-Economic Development.

Did you Know?

Businesses with a turnover of less than R5 million are not required to complete a scorecard and can acquire an exemption certificate proving automatic Level 4 status and 100% recognition.

Sophisticated donors will base decisions on past experience or decisions of other donors when selecting a social development organisation in which to invest.

Donors with limited experience will either incur costs to do their own checks or rely on the marketing of the social development organisation.

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