The new Broad-Based Black Economic Empowerment Codes that were introduced several years ago have been a bane for white business owners and a boon for black entrepreneurs. It’s impossible for entirely white-owned companies to achieve better than Level Four B-BBEE Status whereas majority black-owned enterprises automatically qualify for at least Level Two.
While this hasn’t impacted all business owners, it has affected those who compete for government tenders or trade within corporate supply chains. The impossibility of achieving a competitive B-BBEE rating without dramatic ownership restructuring makes a mockery of both the broad-based empowerment ethos as well as our constitutional right to free trade.
However, recent amendments to the B-BBEE Codes proposed by the Department of Trade and Industry could dramatically alter this state of affairs and make it considerably easier for all entrepreneurs to achieve a competitive B-BBEE rating regardless of their ethnicity.
Join Evergrow with a 30 day free trial to access the rest of this article and use our support to grow your business without the growing pains.