BEE MATTERS
Empowerment scorecard no respite for small enterprises
When the Department of Trade and Industry announced a more lenient scorecard for qualifying small enterprises with an annual turnover below R50m in May 2015, everyone thought it would relieve the pressure on them. But it has not. These businesses are only excluded from completing a scorecard if they have at least a 51% black ownership. An increasing number of state departments, municipalities and big corporates require a black ownership component to be considered as a supplier. This also applies to exempted microenterprises, whose annual turnover was raised from R5m to R10m to qualify for exemption from being measured, automatically achieving a level-4 BEE recognition. All other qualifying small enterprises and generic entities with an annual turnover exceeding R50m can achieve a recognition level only by being measured on all five of the elements on the scorecard. For a generic entity, the total scorecard comprises 109 points and for qualifying small enterprises, 100 points. To ach...
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