Download - Bbbee esd and sd presentation
Improving BBBEE Scorecard through Training and Entrepreneurship
BAYANDA BUSINESS ACADEMY
WWW.BAYANDA.ORG.ZA
Presentation Outline• Introduction
• Purpose of presentation
•NEW BBBEE codes
• Skills Development
• Enterprise Development Proposal
Introduction
Ownership
Management
Skills Development
Enteprise and supplier
Development
Socie-economic development
IntroductionSkills Development Training accounts for 20% of the BBBEE score card
Enterprise Supplier Development accounts for 40%
These 2 element should be emphasised in an effort to improve your score card
Bayanda has what it takes to enable your company to have a comprehensive SD and ESD programme for maximum BBBEE points
BBBEE levelsThere are 118 possible points
Purpose of PresentationTo introduce Bayanda Business Consulting and Bayanda Business Academy as service provider for BBBEE Consulting and SETA Accredited Training Provider
To demystify BBBBEE codes as it relates to Skills Development (SD) and Enterprise Supplier Development (ESD)
To demonstrate how Bayanda Business Academy can enable your company to score maximum points on Skills Development points and Enterprise Supplier Development
Scoring Skills Development Points
BBBEE points
Compliance Target
Place EMPLOYEES in a learnership, apprenticeship or internship
4 2,5% of total employees
Train UNEMPLOYED black people 4 2,5% of total employees
Skills Development EXPENDITURE of black people learning programme
8 6% of leviable amount
Skills Development Expenditure of black people with disabilities learning programme
4 0.3% of leviable amount
An employee any person, excluding an independent contractor, who works for another person or for the State and who receives, or is entitled to receive, any remuneration (LRA)Excludes employees contracted under the Temporary Employment Services
Skills Expenditure Costs are refundable20% refund on Mandatory Grant from SETA of the TOTAL Annual Skills Development Levy paid to SARS. (Mandatory grants are a refund against all monies contributed towards the skills development levy and not on monies spent on training.
Discretionary Grant from SETA for employed black people on a learnership up to R18,000and R36,000 for unemployed learner per person
SARS rebates of up to R30,000 per learner
Terms and Conditions
Subject to the timeous receipt of a correct WSP/ATR by the SETA (30 April)
The learnership must be with an accredited service provider
The learnership must be registered with a SETA.
Skills Development ExpenditureTraining material
Trainers
Bursaries
Accommodation and Travel
Facilities, catering, venue hire
Course fees
Stipends (salaries) of black people on learnership
EXCLUDES sectoral training such as health and safety
Skills Development DocumentsWorkplace Skills Plan
Annual Training Programme
Pivotal report
Learning Programme Matrix
Training Tracking Tool
Accurate proof of expenditure
Bayanda Business Consulting: Skills Development
External Skills Development Facilitator
Develop a Workplace Skill Programme
Develop learning programme matrix
Design a learnership, apprenticeship or internship programme
Learning interventions for employed and unemployed black people including those with disabilities
Register your learnership with SETA
Track and monitoring report template
Conduct training in artisans and entrepreneurship
Assist you claim Mandatory Grant for doing training
Ensure you get minimum of 20 BBBEE points
Skills Development for Job Creation
70% of unemployed people are youth
600,000 of whom have a university degree
SMME employ 13,4 million South Africans
SMME contributed more than 2/3 of National GDP
Entrepreneurship is the main driver for job creation and economic growth
There is no college in South Africa which focuses only on teaching entrepreneurship, until now.
Training Programme
SETA Accredited
32 Unit Standards,
Marketing,
Managing Finance,
Business Plan,
Costing
MERSETA Accredited
in partnership with Majuba and
Welding
Carpentry
Plumbing
Brickmaking
◦ Entrepreneurship Training Pivotal Training.
Skills Programme 1.Entrepreneurship Course
Skills Programme: Procurement, Tendering and Costing
Skills Programme 3: Business Management and Leadership
Enterprise Supplier DevelopmentAccounts for 40 points
Minimum compliance target of 40%
Failure to reach 40% minimum results in score being dropped a notch below
It has 3 elements
a) Preferential procurement
b) Supplier Development
c) Enterprise Development
Enterprise Supplier Development•Supplier and Enterprise Development can only be done for 51% or more Black Owned Businesses;
•These 51% or more Black Owned Businesses must have a turnover of less than R50 million per annum;
•You cannot claim money spend on Supplier Development as money spend on Enterprise Development;
•Supplier and Enterprise Development can only be done on existing businesses;
•The spend on these two sub-elements must be quantifiable in a monetary value;
•There must be a formal written agreement between your business and the recipient of Supplier or Enterprise Development;
•The recipient must show its gratitude by means of a Letter of Appreciation
For Supplier Development you will have to spend 2% (1% QSE) of your nett profit after tax per annum and
For Enterprise Development you will have to spend 1% (1% QSE) of your nett profit after tax.
Amount Supplier Level Recognition Level
R25 000 1 1.35 * R25 000 = R33 750
R25 000 8 0.10 * R25 000 = R2 500
Total: R50 000 R36 250
Percentage of preferential procurement: R36 250/R50 000 = 72.5%
Value adding or Empowering SupplierRequirements for an empowering supplier are
• A “BBBEE compliant entity” (level 1-8)• Complying with all “regulatory requirements”;
and• A large enterprise (>R50 mil turnover) meeting
at least three of the following criteria or one if it is QSE(R10 mil to R50 mil turnover• At least 25% cost of sales (excl labour cost)
must be procured from local producers or suppliers in SA
• 50% of jobs created are for black people• At least 25% transformation of raw
material• Skills transfer-at least 12 days per annum
of productivity deployed in assisting Black EME and QSEs beneficiaries
Principles of ESD To strengthen local procurement in order to help South
Africa’s industrial base in critical sectors of production and value adding manufacturing which are labour intensive
To increase, strengthen and support procurement from black owned QSEs and EMEs allowing them an opportunity to participate in the mainstream economy
Increasing local procurement leads to job creation in South Africa
To promote the use of Black Suppliers and Professional Service Providers
To encourage measured entities to align their supply chain with enterprise development and supplier development
ESDThe measured Entity should develop a Enterprise and Supplier Development Plan that show
• Priority Intervention
• Key Performance Indicators
• Implementation Plan with milestones
• Bayanda Business Academy can assist you develop this plan
Examples of Enterprise Development• Provision of training or mentoring by suitably qualified
entities to beneficiary entities enabling them to increase their operational and financial capacity
Bayanda can be contracted to identify and train youth entrepreneurs
Maintenance of an Enterprise and Supplier Development Unit which focuses on support or beneficiary entities or candidates Bayanda to assist set it up
Payments made to suitably qualified and experience third parties to perform ED and SD on behalf of the entity
Bayanda is accredited and qualified to perform this
Other ESD costsLoans, discounts, credit facilities to beneficiary entities
Direct cost incurred in assisting development of beneficiary entities
Overhead costs attributable to ESD contributions
Preferential credit terms
Facilitating access to credit
etc
Short term Proposal for Enterprise Development•Bayanda has a SETA accredited course on entrepreneurship which
can be used to train unemployed black youth comprising of women and people with disabilities.
•The entrepreneurship course includes business registration, tax clearance certificate and BBBEE certificate
•The graduates from the course become suppliers to your company and create own jobs. Scoring 2 bonus point.
•They can supply groceries, PPE, stationery etc
Recommendations for ESD1. request all your suppliers for BBBEE
certificate.
2. Use my spreadsheet to audit your Procurement spend.
3. Calculate your 1% and 2% NPAT value
4. Outsource your ESD Programme for Bayanda to run and manage
GET ON WITH RUNNING YOUR BUSINESS!
80% of procurement should be on a VA supplier
Red Seal PlacementAccredited as a Temporary Employment Agent
Placement
Screening, vetting of candidates
Verification of Trade Certificates
Accredited by QCTO of SAQA
Thank you!