If you reside within South Africa, then you have most likely heard about BEE. This is the system the government has set up to attempt to uplift the previously disadvantaged black populace. A part of the BEE system is the requirement for a business to obtain a BEE certification. There are advantages to possessing this BEE certification although you might not like the thought very much.
Only businesses with a BEE certification will be considered for government contracts. The government has made the decision that in an effort to enforce the BEE system they will simply award deals to those firms that adhere to the requirements of the actual BEE system. Which means that only firms that have made a good effort to uplift the black population of the nation will be considered for deals. The only method to prove that your organization has been trying and has done fairly well is to have a BEE certification.
For those who have a great BEE certification you can raise the BEE status of your client companies. The BEE rating of all companies is actually affected by the score of those firms that they do business with. This means that if you have a BEE certification which shows an excellent BEE rating your clients will automatically be able to boost their BEE rating and this will be more likely to do business with you.
Of course, a few businesses are exempt from having to work on their BEE rating and don’t need BEE certification. These are the smallest companies in the nation. In the event you company makes less than five million Rand a year, then you’re automatically exempt from the BEE system and therefore are automatically granted a BEE score of four. This does make life much easier for the small company as it can be pretty expensive to get a BEE certification.
If you wish to get your organization BEE certified you’ll have to have your organization audited by an organization that’s authorized to do the appropriate assessments. This is often an costly and lengthy process. It’ll involve the submission of all your work records as well as ownership records and financial records. The impartial organization will then do an assessment and assign your company a BEE rating and a BEE certification which shows that rating. They may also provide you with tips on how to improve your BEE score.
As you can see from the first couple of paragraphs, if you want business from the government or government grants then you have to make certain that you have a great BEE rating on your BEE…