¨Just one great partnership with the right person can have an incredible impact on your business success¨ – Janine Ogg & Jo Foster
It is this philosophy that underpins the successful implementation of broad based black economic empowerment (B-BBEE), for both businesses and organisations like Sparrow FET College. But for many businesses, the changing B-BBEE landscape and the requirements to be compliant can make it difficult.
The amended B-BBEE codes, offer a range of options for businesses that are looking to not only maximise investments in B-BBEE initiatives, but also deliver a meaningful contribution to organisations that look to create inclusive, growth driven opportunities:
Enterprise Development enables businesses to contribute towards the growth and development of an organisation, through funds for specific projects or the donation of goods, or services rendered.
The benefit for the partner is an opportunity to invest in a black owned company and assist in its sustainability. The result is economic growth, and increased revenues for our ailing economy.
Skills Development offers businesses the opportunity to invest in today’s youth, and ensuring that South Africa has a skilled workforce to draw from the various sectors.
The amended codes have placed a strong emphasis on skills development in particular. The codes make significant provision for prioritising women and marginalised disabled youth, both from the existing workforce, and unemployed, previously disadvantaged youth. The new points allocation highlights the importance of identifying, and supporting individuals within these categories.
The benefit to business by choosing to allocate Skills Development spend to partner with a reputable organisation through learnerships or bursaries for the unemployed youth is the knowledge they are upskilling a bigger pool of qualified prospective employees. The beneficiaries of learnerships and bursaries, is their ability to offer their skills and become gainfully employed and a critical part of an economically active population (EAP).
Sparrow FET College for example, offers learnerships and bursaries for both able and disabled youth. A partnership with an organisation, like Sparrow, who has the ability to train this previously marginalised group, is one way to not only maximise their points, but change the future for a young South African. Sparrow FET College won silver at the National Skills Authority Awards 2017 in the “Placement Programme” category.
All too often, the it is the BBB element of B-BBEE that is the focus, rather than the EE element. It is a crucial mistake, because the Economic Empowerment element can only be achieved by a well-managed partnership. Economic empowerment takes an unemployed youth from unskilled to upskilled and ultimately employed, which is the true spirit B-BBEE.
The ROI (return on investment) is point maximisation, thereby increasing the business’s points and level, allowing business to tender for work contracts and ultimately more profit. A business B-BBEE Scorecard is critical to the ongoing success of the business
A well-managed partnership between business and an organisation is beneficial to both parties.
Sustainability for the business by way of new work contracts, an up-skilled labour force and contribution to the economic development of South Africa.
And sustainability for the beneficiary organisation by way of growth and development, enabling it to continue working with business to create an Economically Active Population, and at the same time, addressing the skills shortage currently being experienced.
We believe that done right, and with partnership at its core, B-BBEE can be a WIN – WIN