Page 8 - KZN Business Sense 12.4 - Terry Flack

THE COST OF ENGAGING A B‑BBEE

CONSULTANT TOO LATE

Johan van Deventer, points on the B-BBEE scorecard. implement initiatives or incur
KZN, Regional Elements such as SD, preferential spend to improve their scorecard
Manager, Labournet procurement, and enterprise and for that year.
supplier development (ESD) rely
on initiatives done during the If a consultant is engaged too
elayed financial year. If companies do not late – which most often is close
Broad- plan these initiatives ahead of time, to verification – there may be
DBased they might not have the ability to insufficient time to analyse the
Black Economic implement them before the end organisation’s scorecard, to identify
Empowerment of their financial period. This gaps across the elements and to
(B-BBEE) can lead to businesses spending implement corrective strategies to
planning often money on last-minute initiatives obtain additional points.
turns a strategic that do not meet the B-BBEE Without a sufficient planning
business tool into a reactive, costly Codes’ requirements resulting in window, businesses lose the
and high-risk compliance exercise. wasted expenditure and a lower opportunity to implement
Many organisations approach B-BBEE level or the feeling that targeted initiatives and may
B-BBEE as little more than an B-BBEE is an exhausting initiative ultimately have to accept a lower
annual exercise that ends with a to participate in due to running B-BBEE level simply because there
certificate with the South African around under pressure. was not enough time to address even miss out on deadlines for Businesses that partner with
National Accreditation System scorecard gaps during the active tenders or opportunities to be a consultant proactively and
(SANAS) logo. Elements, such Fronting Risks measurement period. part of a supply chain while they treat B-BBEE as an ongoing
as skills development (SD) and Desperate attempts to improve wait for compliance finalisation. commitment are far better
procurement need consistent scores too close to the deadline Avoidable Financial Pressure positioned to improve their
attention and active management often lead to or resemble The urgency to obtain or renew a The Case for Year-Round scorecard performance, reduce
aligned with the organisation’s fronting, which carries severe B-BBEE certificate within a short Engagement exposure to risk and open doors
growth and transformation goals consequences. Beyond financial timeframe frequently requires Ultimately working with a to new commercial opportunities.
throughout the measurement penalties, companies found consultants and verification B-BBEE consultant at the start of
Contact us today for a
period to reflect genuine progress. guilty may also face serious agencies to prioritise the file, which the year helps businesses to plan complimentary consultation with
Businesses that leave B-BBEE reputational damage, cancellation may result in businesses having to ahead instead of just following one of our B-BBEE experts. 
planning late often find themselves of contracts, and blacklisting deal with a lot of financial stress. rules – and provides them with a
making rushed decisions and from doing business with state Rushing to implement resource to keep records all year T: +27 (0)31 266 6570
spending money reactively, entities. This can severely limit compliance initiatives without round. Leveraging this means M: +27 (0)82 786 7480
with little to show for it. Getting future business opportunities and proper planning could lead to that organisations can make sure E: johanvd@labournet.com
ahead of the process is what damage relationships with clients, rushed training initiatives, sudden that their procurement, training W: www.labournet.com
allows businesses to gain the real, regulators and industry partners. supplier development contributions and development plans match
lasting benefits that thoughtful Missed Scorecard Opportunities or increased administrative what the B-BBEE Codes require,
implementation brings. costs associated with gathering improve scorecard performance,
Organisations are measured reduce compliance risk, and
The consequences of engaging a based on the 12-month period documentation under tight
consultant too late are many, and within their financial year-end deadlines. position themselves for business
the impact significant. and verification agencies assess Without proper record-keeping opportunities. SCAN
activities and spend that occurred of initiatives, the verification At the same time, they can avoid THE QR
Unplanned and Inefficient within that period only. Because creating compliance red flags that CODE TO
Spending process can fail. This means that
of this time limit, once a financial the business will then have to pay expose themselves to regulatory LEARN
One of the costs of delayed period has concluded, companies for another audit, which can cost investigation and long-term MORE
engagement is losing achievable generally cannot go back and a lot of money. Businesses might commercial consequences.

GROW YOUR VISIBILITY THROUGH THE NEXUS

ince 1998, the KZN Top actively sought out.” Through Tier 2: The Connectors Club – at placing member organisations
Business initiative has advanced Google optimisation The Growth Engine at the forefront of the provincial
Sset the benchmark for strategies, participating For organisations ready economy, while amplifying
corporate credibility across businesses benefit from high- to expand their reach, the their success stories through
KwaZulu-Natal. In 2026, authority search visibility, Connectors Club offers a dedicated media exposure and
visibility is no longer optional; leveraging the collective strength more active and results-driven positive business storytelling.
it is the currency of trust. The of the Top Business network platform. Members gain access With the official launch
launch of The KZN Top Business to rank prominently where it to a marketplace environment scheduled for 13 May 2026,
Nexus marks a bold step into matters most. where they can position their businesses that join now will be
a new digital frontier, inviting own products and services as fully optimised and positioned
businesses to build on an A Tiered Approach benefits to fellow members. to maximise exposure from
established legacy while securing The Nexus introduces a This transforms participation day one. Adlam concludes,
a competitive presence in the structured, three-tiered model from passive listing to active “Businesses are encouraged to
regional market. designed to accommodate opportunity creation, enabling act decisively and secure their
Grant Adlam CEO of KZN businesses at every stage of their businesses to build a direct place rather than risk being
Top Business says, “The KZN growth journey. pipeline to potential clients. outpaced in an environment
Top Business Nexus has been where visibility, credibility and
designed for businesses seeking Tier 1: The List – The Ultimate Tier 3: Platinum Membership – connection define success. And
to strengthen both their digital Entry Point The Inner Circle at KZN Top Business our motto
footprint and real-world This entry-level offering Reserved for industry leaders, is “success breeds success”.
connections. It is a dynamic removes traditional barriers Platinum Membership is
ecosystem that bridges the gap to participation, providing designed for businesses seeking For more information contact:
between online visibility in- businesses with immediate strategic influence and elevated E: maryke@kzntopbusiness.com
person engagement, ensuring access to a trusted and positioning. This level offers a T: +27(0)82 877 7906
that brands are not only seen but established database. collaborative partnership aimed W: www.kzntopbusiness.com

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