Enterprise development with the help of BBBEE

Businesses can score big on their BBBEE Scorecard by supporting NPOs and business owners with disabilities. RUSTIM ARIEFDIEN explains how

The Enterprise and Supplier Development element of the BBBEE Scorecard carries the most points. There is a maximum of 44 points that a company can earn made up of 26 preferential procurement points; 10 supplier development points; five enterprise development points; and two bonus points when a supplier has graduated from enterprise development to supplier development with at least one job created in either of the developmental processes.

Suppliers that are majority black, female- owned with a turnover of less than R10 million and fall within the designated group of suppliers – such as having a disability – will provide the most points to a company.

Business owners with disabilities or NPOs in the disability field also offer unique value to companies that wish to get the potential 36 points on the BBBEE scorecard. Business owners with a disability offer the two bonus points available for the designated group supplier.

The point tally can increase further should the NPO start out under enterprise development and become a supplier that benefits from supplier development spend. If jobs are created through this process, then there is even more value to the company. Each of these scenarios presents a bonus point; each taking the potential point tally up to 38 points.

This is particular significant for the protective workshop industry where there is quite a bit of economic activity. In many instances, the primary income is obtained through the sale of products or the provision of services. However, protective workshops find themselves in a competitive market with enterprises without workers with disabilities – all competing for the same slice of the pie.

The Public Finance Management Act (PFMA) dictates that organisations for people with disabilities cannot obtain funding from state departments that handle trade and industry. Instead, funding comes from the Department of Social Development even though protective workshops are economic enterprises in the true sense of the word. With the right investment, these workshops could greatly enhance their service and efficiency.

Companies don’t have the same PFMA restrictions and are able to invest in a protective workshop through enterprise development. In the next year of assessment, companies can invest even further when they engage the services of the organisation through supplier development. All the money spent with the workshop will count to the company’s Preferential Procurement points.

If the organisation is a level one contributor, then the company will obtain the highest value in BBBEE Scorecard. Enterprise and supplier development is a lever that can significantly impact growth for disability-owned enterprises and protective workshops.


contributor

Rustim Ariefdien is a disability expert extraordinaire who assists businesses to “let the Ability of disAbility enAble their profitAbility” through BBBEE, skills development, employment equity and socio-economic development. His purpose is the economic empowerment of persons with disability in Africa. As a person with a disability himself, he has extensive experience in the development and empowerment of persons with disability.

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