Rated companies are encouraged to develop and implement a supplier development plan The measured company has the opportunity to significantly increase the revenue source for the ED beneficiary by providing new or expanded contracts. Supplier development has the potential to ease one of the most critical restrictions for small businesses: market access. Guaranteed contracts are often an essential condition for financing; Participation in a supplier development program often provides funding opportunities for recipients. SD contributions are paid to companies that are already part of the current supplier chain of the measured company (ME). ED contributions are paid to companies that are not part of the ME supply chain. At least 25% of the cost of turnover, excluding labour costs and depreciation, must be collected by local producers or suppliers in South Africa, with the cost of labour for the service sector included, but limited to 15%. What is an empowering provider? – Who is a good South African company, which meets all the regulatory requirements of the country and should meet at least three of them when it is a large company, or one if it is a QSE of the following criteria: to qualify as a skills provider, a company must meet all regulatory requirements and comply with at least three of the four rules, in the case of a generic business or in the case of a qualified small business. What is the expected result? The growth of small and medium-sized enterprises through financing and support. This support will help these companies overcome barriers and increase their competitiveness in the marketplace, leading to job creation and poverty reduction. Note „Value Adding Suppliers“ has disappeared and we now measure BEE editions ONLY for „Empowering Suppliers“. EME, QSE or generic drug companies, at least 51% owned or black and using direct shares in NOTE generic drugs, first had to have received the support of the unit measured when they were eme or Qse to qualify. Financial and non-financial assistance to AGEs and Qses, 50% owned by blacks and holding an annual OR of less than R 35 million or 25% or more, whose annual turnover is less than 35 million.
Supplier Development (SD) and Enterprise Development (ED) beneficiaries can only be EMEs or QSE that hold at least 51%. Skills transfer – at least 12 days per year of productivity used to help Black EMEs and SAQ beneficiaries increase their operational or financial capacity. Points are awarded in proportion to this objective. Job creation – 50% of the jobs created are for black people, provided that the number of black employees is maintained since the B-BBEE measure immediately verified. What is Enterprise Development (ED)? – ED is the growth of small and medium-sized enterprises (EDEs and QSEs, in order to create wealth and improve the quality of life of the poor. Measured companies must contribute 2% of net profit after tax (NPAT) and 1% of NPAT for Enterprise Development (investments in companies outside their supply chain) to achieve the full 15 S&ED points on their B-BBEE scorecard. B-BBEE codes further stimulate the measured unit by providing bonus points for graduation of ED and Qse`s from an ED program in the supply chain. E&SD is a priority element: this means that at least 40% of each ownership, skills and E&SD goal must be achieved. . . .