Sparrow FET Enterprises is a fully accredited, social enterprise training provider specialising in Apprenticeships, Learnership, Skills Programmes and Recognition of Prior Learning (RPL) initiatives and can help you Maximise your B-BBEE Points as we focus on the B-BBEE Codes of good practice.
We are 98% black owned , 30% female owned and have been awarded a Level 2 B-BBEE rating which enables you to account for 125% of your procurement spend with Sparrow FET Enterprises. We are a QSE, that positions us as a ED and ESD Beneficiary.
Sparrow FET Enterprises (Pty) Ltd, is owned by Sparrow Schools Educational Trust. In partnering with us, there are a number of benefits in terms of B-BBEE that could be of benefit to your company.
There are various B BBEE scorecards applicable to different sectors. The applicable scorecard will depend on the SETA with which the company is registered, or where the main revenue stream is coming from. A company will fall either under Generic or QSE if they cannot be allocated to any other SETA
Sparrow is able to assist our clients with improving the following sections of their BBBEE scorecard:
- Skills Development
- Enterprise Development
- Enterprise & Supplier Development
- Socio Economic Development
Sparrow FET Enterprises proposes a practical approach to Skills Development that ensures that if you are our client you can maximize your B-BBEE points, at the same time achieving tangible results in terms of their return on investment in their business and people development strategy
Skills Development must:
Contribute to the achievement of the country’s economic growth and social development goals that will enrich the creation of decent work and sustainable livelihoods.
Promote the development of an industrial skills base in critical sectors of production and value-added manufacturing, which are largely labour-intensive industries.
Support ‘Professional, Vocational, Technical and Academic Learning programmes, achieved by means of professional placements, work integrated learning, apprenticeships, learnerships and internships, that meet the critical needs for economic growth and development.
Strengthen the skills and human resource base by encouraging the support of skills development initiatives with an emphasis on skills development and career pathing for all working people in order to support employment creation. https://www.bbbeecommission.co.za/wp-content/uploads/2019/06/42496_31-5_Amended-Statement-000-300-and-400.pdf
Enterprise development (ED) involves dedicating time and resources to assist individuals in initiating, expanding, or enhancing their businesses. This endeavor empowers people to generate income, escape poverty, and fosters sustained economic advancement for themselves, their families, and their communities. Recognized globally as a potent strategy in alleviating poverty, enterprise development constitutes a crucial facet of B-BBEE, contributing to its overarching goals.
The B-BBEE amendments offer corporate South Africa an excellent chance to foster more sustainable businesses and enhance their involvement in socio-economic transformation. Globally, investing in and enhancing local economies is esteemed as a vital business principle, ensuring profitability and overall economic prosperity. Prioritizing the development of sustainable small businesses through enterprise development programs will significantly advance this transformative process in South Africa.
The Enterprise and Supplier Development (ESD) consist of:
- Preferential Procurement
- Enterprise Development; and
- Supplier Development.
Enterprise Development and Supplier Development Contributions will be recognised as a percentage of annual Net Profit After Tax (NPAT).
The Net Profit After Tax (NPAT) or average target applies unless:
- the company does not make a profit last year or on average over the last five years
- the net profit margin is less than a quarter of the norm (https://www.bbbeecommission.co.za/wp-content/uploads/2019/06/42496_31-5_Amended-Statement-000-300-and-400.pdf)
Enterprise and Supplier Development is a priority element on the BBBEE Score card.
Socio–Economic Development (SED) contributions are any monetary or non-monetary contribution implemented for individuals (natural individual or group of natural individuals) or communities, where at least 75% of the beneficiaries are classified as black people in terms of race
QSEs and Generic Entities will be recognised with valuable points under the SED element for making these contributions towards the beneficiaries under the criteria.
In terms of the BEE Codes of Good Practice, the objective of SED contributions is the promotion of sustainable access for beneficiaries to the economy.
WHAT COUNTS AS SED CONTRIBUTIONS?
SED contributions can be in the following forms:
- Grant Contributions
- Offering Discounts
- Covering overheads or direct costs
- Providing professional services at no cost
- Providing professional services at a discount rate
It is important to note that these contributions must be made within the financial period on which the BEE rating of the entity will be conducted.
To claim points under this element the beneficiary must provide the entity with the following:
- A letter acknowledging receipt of the contribution, declaring that the beneficiaries are at least 75% black as defined by the Codes of Good Practice and that the full contribution was allocated to these black beneficiaries.
- All contributions need to be proved by providing the proof of payment and a Section 18A certificate.
- A competent third party must also provide confirmation of the percentage of black beneficiaries who benefited from the contribution. The third party confirmation can be provided by, for instance, the auditor of the organisation.
