Bridge the” GAP”
A gap analysis is a method of assessing the differences in performance between a business’ information to determine whether business requirements are being met and, if not, what steps should be taken to ensure they are met successfully. Below are some pointers where a B-BBEE “Gap Analysis” is concerned:
- Supplier Development assists the financial and operational growth of a supplier from your database.
- Once you have identified the “right fit” beneficiary for your business and you have established a mutually beneficial relationship, the next step is to identify the correct method of support.
- There are many ways to support beneficiaries including monetary and non-monetary. Most businesses choose a monetary method due to time constraints.
- Monetary contributions can be done in various ways. Grant contributions, discounts allowed in addition to normal business practice, overhead costs incurred in supporting enterprise development and supplier development as well as loans.
- Regarding loans, you need to be vigilant about the benefit factor of the two different types of loan contributions. On interest-free loans you will get 70% recognition based on your outstanding amount and on standard loans you will get 50% recognition of your contributions.
- The best way to manage a loan is to take the interest-free option and apply it over a period of 5 years. Due to the “outstanding loan amount” rule in the B-BBEE codes of good practice, you will receive recognition for the 5 years based on one contribution you have made.
- Same as Supplier development, but this entity should not be on your supplier list yet but can graduate to become a Supplier for bonus points on the B-BBEE scorecard.
- The new codes demand far greater investment in skills development with a particular emphasis on accredited training and learnerships.
- However, a business can make this work to the company’s benefit by:
- Using Skills development to develop the skills necessary to excel in business
- Invest in your people to retain them longer
- Create ladders of learning that create career paths
- Choosing an experienced partner in implementing such programmes is essential to making these programmes a success.
EconoServices has advanced systems in place which specialize in minimizing these risks for our clients. We have only included a few examples above of what can be done – our dedicated consulting team is standing ready to help you and your company to “bridge the GAP”!
So, give us a call today on 011 483 1180 and let us help you put together and implement the best, most cost-effective, B-BBEE solutions and strategies for your business!