BEE or Black Economic Empowerment is one of the most important economic policies that have been produced in South Africa since the fall of Apartheid.
However, many people are still unclear about the details of BEE and may not realise that their business could benefit significantly from having a good BEE scorecard. Here are the facts you need to know about BEE as a business owner:
Why BEE Is Important
BEE is a government policy which is intended to increase participation and ownership in the economy by previously disadvantaged cultural groups including South Africans of African, Indian, Coloured and Asian ancestry. The goal of BEE is to create an economy and society where all South Africans are either employed or work for themselves, ensuring prosperity and stability for the country.
How Your Business Will Benefit
Despite the importance of BEE, there has been a fair amount of misunderstanding among certain members of the white business community about the intentions of this policy and how it will affect their businesses.
Because of preferential procurement, whereby government departments and certain large corporations are required to deal only with suppliers who are BEE-compliant, it may seem as if the BEE policy discriminates against white-owned businesses. However, for business owners who have taken steps to comply with the BEE policy the benefits are significant.
Here are just a few benefits of BEE:
- Your business will not be negatively affected by the preferential procurement policy, protecting your revenue in the long term.
- Your business will have the opportunity to expand its client base to include government departments and state-owned entities
- You will gain an advantage over other businesses which are not BEE-compliant, giving your business the edge when dealing with competitors
- Over the long term, more people will be active in the economy, creating a prosperous future where South Africans will be safer, wealthier, and pay less tax.
If you’re keen to register your business as BEE-compliant or check your BEE rating, contact us today. Coby Windvogel, who is a registered tax practitioner, will guide you through the process of becoming BEE compliant.