WORKING WITH LARGE CORPORATIONS

Larger corporations (defined as having a turnover higher than R35 million per annum) need to spend the equivalent of 3% of net profit after tax (NPAT) on Enterprise Development to attain the 15 points available on the BBBEE scorecard. If it is able to select and develop the Beneficiary Enterprises successfully, the corporation will be able to use the developed enterprise as customer or supplier. In the case of the latter, bonus points are available, under Code 500 on Preferential Procurement, for a company that procures from one of its ED beneficiaries.

What Enterpriseroom can do for you:

  • We can assist with ensuring that your ED strategy is aligned with your business objectives, and source or help you build the beneficiaries to help you make business sense out of the ED spend
  • We will ensure the systems and structures are in place to optimise your points on your scorecard
  • We will vet all beneficiaries, match them with the most appropriate ED intervention, and monitor their progress on your behalf

Enterprise Development is one of the seven elements of the BBBEE scorecard which is made up as follows:

Element Points
Ownership 20
Management Control 10
Employment Equity 15
Skills Development 15
Preferential Procurement 20
Enterprise Development 15
Socio-Economic Development 5
Total 100

ED Benefit Factor Matrix