South Africa has a complex history when it comes to the business sector. For quite a while some people were excluded from the market. Since 1994, the new government has placed some plans in place to correct the wrongs of the past. One of these plans is Black Economic Empowerment.
Black Economic Empowerment’s main purpose is to give previously disadvantaged groups a fair chance to get their foot in the market. The program entitles that these previously disadvantaged people will receive ownership in businesses, a preference when hiring and they will be able to attend skill development courses.
Objectives of Black Economic Empowerment ( BEE ):
The government instated BEE to achieve certain goals that they had in mind for the program. These goals include the following:
- To motivate and give black people the necessary skills to successfully start and run their own businesses.
- Increasing the number of black people that are in managing positions and the portion of shares that they own in other businesses.
- Making internships available and offering skills development to black people first, to ensure that they will increase their skills.
Importance of Black Economic Empowerment ( BEE )
Some people tend to overlook the importance of Black Economic Empowerment ( BEE ) and simply see the negative aspects. In order for a country to achieve its full potential, all the people in the country should be a part of it. The diversity of people and opinions in South Africa defiantly makes it more challenging. But the tougher the challenge the more rewarding the victory. According the Department of Trade and Industry (DTI) they agree with this statement. They published a BEE strategy document wherein they mention that South Africa will need to be able to provide in the needs of all the people in the country. The only way in which this will be achieved is when all the people in the country are included in the economy.
All the people in the country should be well educated. This will have to affect that they will be able to reach their full potential. This includes people from all backgrounds. The reason that the Black Economic Empowerment program was developed, was to be certain that the previously disadvantage people will get a chance to have their skills developed as well.
Unfortunately, this cannot be done overnight. And this is the point that some people do not understand. Different people in the country will not be on the same level of development once the first generation benefiting from BEE are parents or even grandparents. By that time all the people will have realised the importance of education. In that timeframe they will also have been able to work themselves up to a decent level, able to provide for their own children’s education.
Another reason why BBE is important is that your business can benefit from it. Some tenders are only given to businesses that comply with BEE. This will give you the immediate competitive advantage above your competitors. You will get this basically for free when you do something that will benefit the country as a whole. You can also easily apply for a BEE verification, which will give you the necessary proof of Black Economic Empowerment ( BEE ) compliance.
The DTI is a major help when it comes to BEE. They have multiple self-assessment tools, scorecard guides and a lot of other information and documentation that can be to the advantage of a business. You can visit their website to find out more. BEE is also governed by the Broad-Based Economic Empowerment Act of 2003. The act was drawn up to ensure that BEE will be taken seriously and that businesses will make a definite attempt to do business in accordance with this law.
This information will arm you to make the best of Black Economic Empowerment ( BEE ) in your business. This will help South Africa to become an economic force to be reckoned with. And also becoming a country where all the people play a vital role in sustaining economic well-being.
BEE Levels that we offer:
Level 1: If your company is 100% black owned, you will get a Level 1 BEE Verification– the best level available!!! Guaranteed.
Level 2: If your Company’s black ownership is between 51% and 99%, you will get a Level 2 BEE Verification– Guaranteed.
Level 4: If your company is 50% or more white owned, you will get a Level 4 BEE Verification which is still within the top 50% of all BEE levels – Guaranteed.
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