When all is said and done your enterprise’s B-BBEE compliance results in an awarded B-BBEE level – also called the B-BBEE status. This article explains the status levels that can be achieved and how they are set out in the legislation.
An enterprise’s B-BBEE status is determined in accordance with the score it receives on verification.
The levels for EMEs and QSEs may be calculated without specific reference to the score the enterprise attained during verification, e.g. a QSE will automatically receive a level 2 status where 51% of the Ownership is in black possession and to Level 1 status where 100 % Ownership is in black possession. (Read More on Enterprise Types here)
The following status is ascribed to an enterprise when it attains the relevant score in respect of the five elements:
| * | Level 1 | ≥ 100 Points |
| * | Level 2 | ≥95 but < 100 Points |
| * | Level 3 | ≥90 but < 95 Points |
| * | Level 4 | ≥80 but < 90 Points |
| * | Level 5 | ≥75 but < 80 Points |
| * | Level 6 | ≥70 but < 75 Points |
| * | Level 7 | ≥55 but < 70 Points |
| * | Level 8 | ≥40 but < 55 Points |
| * | Non-Compliant | < 40 |
It is important that businesses aim to achieve a specific score, and thus level of compliance, BEFORE they set out on their B-BBEE compliance path to prevent wasted resources. Carefully traversing the road from enterprise categorization through scorecard use and element compliance to achieve a certain B-BBEE status is the logical way to approach compliance.
In the last article of this series, we discuss a final and very important element pertaining to Ownership – the Modified Flow-Through Principle. Click here to read it now.
