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Updated 15 Oct 2019


Grow skills, suppliers and markets

By supporting skills development, enterprise development and socio-economic development, you will boost your BBBEE rating while helping the economy to grow.


02 April 2012  Share  0 comments  Print


All the answers to your unique business lifestage questions

By supporting skills development, enterprise development and socio-economic development, you will boost your BBBEE rating while helping the economy to grow.

Skills development counts 15 points towards your BBBEE rating. It refers to the development of black people to facilitate their interaction in the economy and is measured in terms of the number of black employees participating in learnerships, and the money spent on training as a percentage of your total payroll.

Any business with an annual payroll in excess of R500 000 is currently required to pay a 1% levy to the Skills Development Fund. The scorecard awards points for expenditure over and above this 1%, with a goal of 3%.

This training must be either part of a specified learning programme (as defined in Code 400) or a core skill (as defined by your company). Because companies have unique requirements, core skills training does not have to be SETA-accredited, in fact most of it will be on-the-job training.

You need to work out how much this training costs the company in order to claim the relevant BBBEE points. The best method is to base it on the time-value of the trainer and trainee.

The advantage of skills development - besides being a significant BBBEE point-scorer - is that it provides you with a trained candidate who can become part of your permanent staff (thus boosting your employment equity figures) while being able to make an immediate contribution to your business.

Enterprise development refers to both financial and non-financial investment in another organisation. It could include mentorship, raw material or even the donation of professional services, as long as you can put a Rand value to it.

The final element of the BBBEE scorecard is socio-economic development, also known as corporate social investment. This generally refers to a company's donation/s to charities, or involvement in industry-specific charity-based initiatives.

Socio-economic development is not about hand-outs - a successful investment should make strategic sense for your business. For example, a magazine publisher that donates money to a literacy programme is creating readers for its future publications and thus ensuring a long-term market for its product.

Your reasons for any socio-economic development should extend beyond your scorecard. Strive for something that helps to create a new market or new potential for your business in the years to come, and let the BBBEE points work for you in the meantime.

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