How Small Businesses Can Improve Their B-BBEE Score
A better B-BBEE score opens doors to government contracts, corporate supply chains, and financing. Here are practical ways small businesses can improve their score without breaking the bank.
Key Takeaways
- Ownership is the highest-weighted element — consider black shareholding
- Skills development spending is one of the easiest elements to improve
- Enterprise and supplier development has high weighting and bonus points
- Small businesses (under R10m turnover) qualify for the QSE scorecard
- Micro enterprises (under R10m) are automatically Level 4
Understand which scorecard applies to you
Your B-BBEE scorecard depends on your annual turnover. Exempted Micro Enterprises (under R10m) are automatically Level 4. Qualifying Small Enterprises (R10m-R50m) use the QSE scorecard. Larger businesses use the Generic scorecard.
- Under R10m turnover: Exempted Micro Enterprise (EME) = Level 4 automatically
- R10m-R50m: Qualifying Small Enterprise (QSE)
- Over R50m: Generic scorecard
- 51%+ black-owned EME = Level 1 automatically
- 30%+ black women-owned EME = Level 2 automatically
Improve your ownership element
Ownership is the highest-weighted element. Bringing in black shareholders, even at a minority level, can significantly improve your score. Consider employee share ownership schemes or selling equity to a black business partner.
- Ownership is 25 points on the Generic scorecard
- Even 26% black ownership makes a significant difference
- Employee Share Ownership Plans (ESOPs) count
- Broad-based ownership schemes also count
- Consult a BEE advisor before restructuring ownership
Skills development is the easiest win
Spending 1% of your payroll on skills development for black employees is one of the easiest and cheapest ways to improve your score. Send employees on accredited training courses.
- Spend 1% of payroll on skills development
- Training must be for black employees to score maximum points
- Learnerships and apprenticeships score bonus points
- Use accredited training providers
- Keep all training records and certificates
Ready to see your own numbers?
Use the BEE Scorecard Estimator