It is very important to note that acquiring an acceptable BEE status is not necessarily only about black ownership. The broad-based scorecard, which allows flexibility to score points in areas such as employment equity, skills development, procurement, enterprise development, and corporate social investment, makes it possible for traditional white-owned companies to have a better status than some black-owned companies.
Some of the benefits of, and reasons for embracing the process are:
1. It will safeguard existing business. The ripple effect that preferential procurement will have down the supply chain will eventually affect almost all business entities. An acceptable scorecard will ensure that business is not lost to competitors that are BEE compliant.
2. If done quickly and efficiently the opportunity will be there to gain business from non-compliant competitor business entities.
3. Being part of a transforming and vibrant economy. The burgeoning motor and building industries exemplify the positive effect black purchasing power can have on stimulating the economy.
4. As economic growth takes effect, escalating profits of business entities, and the broadening of the tax base due to increased black participation in the formal business sector, will lead to lower tax rates for all.
5. Skills development, one of the seven BEE scorecard elements, will lead to greater efficiency and competitiveness, increased productivity, and improved customer relationships.
6. Increased investment in South Africa by foreign investors.
7. Unemployment, and therefore poverty and crime, will be reduced.
It is clear from the positive attitude of the major corporations in South Africa, that there is much to gain from embracing the BEE process.