OVERVIEW OF ENTERPRISE AND SUPPLIER DEVELOPMENT

ESD

This element is also nominated as a Priority Element, and to prevent being dropped by one level, companies must comply with at least 40% of the targets specified.

This element aims to catalyse the level of black entrepreneurship in the economy, through directed procurement with enhanced recognition for black-owned businesses, as well as recognition for initiatives which support these entrepreneurs being recognised, for example grants to ease cash flow, loans below standard interest rates, non-dividend investment, payment within 10 days of presentation of invoice, human resources capacity directed from the company, at the company’s cost, to assist or train the black entrepreneur.

The Preferential Procurement section of this element drives Black Economic Empowerment in the private sector, as well as in the government sector.

In order to be recognised on another company’s B-BBEE Scorecard, a company must be verified as an Empowering Supplier. This is aligned with the “Made in the USA” policy implemented in the United States of America, to drive local production. To qualify as an Empowering Supplier, a company must

1.      Have at least 25% of its cost of sales procured from local suppliers/manufacturers;

2.      Have at least 50% of the jobs created during the period being verified occupied by black              employees;

3.      Transform at least 25% raw material in its manufacturing or production processes;

4.      Spend at least 12 days per annum of its productivity deployed in assisting black-owned             companies to increase their financial or operational capacity.

On this Scorecard, 80% of suppliers must be compliant to gain the maximum scoring, with the following cross-sections of compliance of these suppliers:

1.      15% of the above 80% procured from B-BBEE compliant entities that are EMEs

2.      A further 15% of the above 80% procured from B-BBEE compliant entities that are QSEs

3.      Of all of the above spend, another cross section requires that 40% of that spend is on                 suppliers that are 50% black-owned and 12% is spent on suppliers that are 30% black                   female-owned

This Scorecard includes a further two sub-elements which require a company to support companies that are at least 51% black-owned with a turnover below R50 million:

1.      Enterprise Development

An enterprise development beneficiary is an enterprise with whom the company does not transact i.e. does not procure goods or services, but supports in their development.

Target for this element is 1% of net profit after tax.

2.      Supplier Development

Development initiatives and support of 51% black-owned businesses with whom the company does trade. Target for this sub-element is 2% of net profit after tax.

Failing to meet 40% of these targets will also result in the company’s B-BBEE Level being dropped by one level.

BRENTWOOD HAS A LIST OF ASSESSED AND VERIFIED ENTERPRISE AND SUPPLIER DEVELOPMENT INITIATIVES IN PLACE - YOUR SCORE IS SAFE WITH US.

For more information contact bee@brentwood.co.za