B-BBEE (Broad-Based Black Economic Empowerment) can sound complicated, but for a small business the starting point is simple: your customers want to know how you score, because their own scorecards depend partly on who they buy from.
Why it matters to you
- Government and corporate buyers often ask suppliers for a B-BBEE certificate or affidavit.
- A better level can make you more competitive when buyers compare bids.
- It may open doors to supplier development programmes.
Know your category
Businesses are grouped by size, usually based on annual turnover. Very small businesses, known as Exempted Micro Enterprises (EMEs), generally have a simplified route, often through a sworn affidavit. Larger small businesses, known as Qualifying Small Enterprises (QSEs), and bigger companies are normally assessed by an accredited verification agency against the scorecard. The turnover thresholds and rules can change, so always confirm the current ones.
What the scorecard looks at
The scorecard rewards things like ownership, management control, skills development, enterprise and supplier development, and socio-economic development. Which elements apply to you depends on your category.
Where to start
- Work out your category from your latest financial figures.
- Gather your documents: registration documents, ownership details, financials, payroll records and training records.
- Choose the right route: affidavit or verification by an accredited agency.
- Plan for improvement: training, supplier choices and community spend can all improve your score over time.
A certificate or affidavit has an expiry date, so diarise the renewal. Having your records organised all year makes each renewal much easier.
This article is general information for South African small businesses and is not legal, tax or financial advice. Rules, fees and dates change, so confirm current requirements with the relevant authority or speak to us.