Page 15 - SA Chamber UK - September Newsletter- eBook

Ecosystem Support

These two elements on the B-BBEE scorecard help to create significant transformation
momentum for both formal and informal sector individuals and SMEs. They help to lay
the platform for the transfer of skills, and to create opportunity for individuals and SMEs
to enter the economy and contribute towards South Africa’s growth, advancement, and

economic recovery. The B-BBEE Act, and in particular the procurement and socio-economic
development elements, create significant means for SMEs to receive support and funding.

There is a need for ecosystem support to help SMEs draw in essential knowledge, gain
business process understanding, and ensure adequate integrated reporting systems and
policies that maintain their ongoing high-quality reporting and service delivery, to support
the enterprise’s growth and long-term sustainability. In South Africa, there is little difference

in reporting responsibility of a large organisation and that of a small enterprise. Failing which,
they set themselves up to face the wrath from
authorities for their transgressions.

Good Corporate Citizens
Larger organisations too demand compliance

adherence in their engagement with SMEs.
Their own B-BBEE scorecard requires that they
engage with properly constituted enterprises,
that meet legislative requirements as stated

in the Company’s Act and are regarded as
good corporate citizens.

If an engaged enterprise for example does
not have a B-BBEE scorecard or affidavit,
then the engaging organisation will not be
able to allocate B-BBEE points on their own
scorecard. There are also other areas of strict

compliance, where joint and several liability is
apportioned to both the company and service
supplier where compliance is not evident.

Enterprise and supplier development, a
subsection of the procurement element on

the B-BBEE scorecard, when used effectively,
provides support and opportunity for larger
organisations to generate the confidence
they need when engaging with SMEs.

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SA CHAMBER UK NEWSLETTER SEPTEMBER 2023