To B-BBEE Or Not To B-BBEE

To B-BBEE Or Not To B-BBEE

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BBBEE divides the entrepreneurial nation. There are many different speculations, myths and perceptions about BBBEE confusing our business minds, leaving us with a non-beneficial concept and implementation thereof.

Myth 1: B-BBEE is a handout

Corporates minding their own business have often very little good to say about BBBEE. BBBEE surely feels for many like a hand out, a donation, giving away hard-earned and well-deserved money. Point taken, understood.

BBBEE compliance come at an expense. But how about you can turn that compliance spend into investment spend? It is more than just possible, it is actually being done already. Especially ESD can change the entire business environment you are operating in to your benefit.

Related: Corporate BBBEE Compliance Turned Into BBBEE Investment

Myth 2: B-BBEE does not create real empowerment

B-BBEE might feel to many entrepreneurs like an unfair, undeserved redistribution of wealth and power. Where in some cases that may be, the expansion of the economic pie through Enterprise & Supplier Development within B-BBEE truly does bring empowerment, which has to be developed, earned and deserved by each individual. Every new business owner has to work hard and smart, they own their successes as well as their failures.

Myth 3: B-BBEE means exclusion

In 2016 the economic landscape of South Africa reflects a draughty, hopeless scenery. Unemployment, crime and corruption are the norm. B-BBEE might not be the sole solution to these complex issues. But social challenges are never just social challenges.

Ask yourself the following questions: Will employment and entrepreneurship change the face of South Africa? Most definitely. Undoubtedly will working, earning and content individuals make a difference on the world we live in day in and day out and the environment we work in and day out – for all of us, no matter what colour, race, age or gender you are.

Related: B-BBEE: Moving Beyond Compliance Into Investment

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So to B-BBEE or not to B-BBEE?

Are you willing to spend some of your hard-earned and well-deserved money to change not just the lives of a few, but your very own business and social environment to the better?

Enterprise & Supplier Development done right maximises your profits, increases your success and improves your quality of life.


4 Quick ways to benefit from your ESD contributions

How your business can benefits with these innovative, tailor-made ESD strategies:

  • ESD creates a consistent supply chain – Through Enterprise & Supplier Development your struggle with an inconsistent and unreliable supply chains can be over. ESD, if implemented correctly, provides you with suppliers who can supply on demand, in the right quantity, to the right quality and the right price. More control and insight into you supply chain creates better competitiveness.
  • ESD as sales arm into new markets – If you are struggling to get into specific markets, then ESD might just be the perfect strategy for you. ESD provides you with an extended and widened sales arm into various different markets and distribution chains through the development of clients acting as resellers of your product.
  • ESD allows for diversification of product range – If you intend to widen your product offerings, buying the right assets and equipment can be very expensive and difficult to finance. Black owned start-up enterprises are more likely to obtain funding for the same assets and equipment. These start-up enterprises can then become a supplier to your organisation allowing you to diversify your product range.
  • ESD allows for lower imports – It can be hard to compete with Chinese imports on a price and now even a quantity level. While the demand for low quantities and tailor-made products is high, it is hardly profitable for many big corporates. ESD leaves the doors open for you and your competitors to create an ESD beneficiary who will be able to supply you with the required products. As they are smaller, organisational overheads is less making it profitable for the ESD beneficiaries to manufacture products. Lower imports reduce the risk of currency fluctuations and forex losses.
The Investment House
The Investment House combines leading-edge industry expertise with creative talent and strategic thinking to reach the objectives of our clients. Our mission is to contribute with Business Development and Business Intelligence to an empowered nation enjoying financial freedom and prosperity. Our vision is to be South Africa's most successful business developer creating sustainable economic growth and wealth.