Asukume creates opportunities for corporates in various ways
Asukume can help companies seeking B-BBEE scorecard benefits in two ways, namely:
- By facilitating Enterprise development and
- By facilitating Supplier Development
Enterprise development and supplier development are two of the three priority elements of the B-BBEE scorecard.
About Enterprise Development (ED)
A Measured Entity is required to achieve a 40% sub-minimum of each of the categories on the Enterprise Development and Supplier Development element (excluding bonus points). This sub-minimum amounts to 4 out of 10 points for Supplier Development, and 2 out of 5 points for Enterprise Development. Failure to comply with any one of the two sub-minimums will result in a drop of one level on the Broad-Based Black Economic Empowerment (B-BBEE) scorecard.
It is important to note that the Enterprise Development beneficiary cannot be a supplier to the Measured Entity, unlike Supplier Development which is specifically a contribution that the Measured Entity must make to a black-owned business within its supply chain.
The following bonus points are available under the Enterprise Development sub-element:
- One bonus point for graduation of one or more Enterprise Development beneficiaries to the Supplier Development level
- One bonus point for creating one or more jobs directly as a result of the Supplier Development or Enterprise Development initiatives by the Measured Entity.
How can Enterprise Development points be earned?
In order for the Measured Entity to obtain the available points on the Enterprise Development element, the Measured Entity is required to spend 1% of their Net Profit After Tax (NPAT) on enterprise development. This is applicable to the Generic scorecard as well as the QSE scorecard. Should the Measured Entity not make a profit for the particular financial year, or if its NPAT does not exceed a quarter of the industry norm, a calculation will be made to reach a “deemed net profit”.
The contribution must take place during the Measured Entity’s financial year. No contribution made after the financial year will be taken into account for the verification applicable to the relevant financial year.
