Entities often question the relevance of having a non-compliant BEE certificate when being non-compliant has zero BEE recognition. There are many reasons for opting to obtain a non-compliant BEE certificate.
One of the primary reasons for obtaining a BEE certificate, even a non-compliant certificate, is to be registered on large enterprises’ vendor databases. Without a valid BEE certificate, your entity cannot do business with these large enterprises, as your entity will not be visible to them.
Another important reason for obtaining a BEE certificate is to be able to do business with organs of state, state-owned entities and municipalities. The minimum criterion for most of these entities is a valid BEE certificate.
Many corporations look at the points scored on the BEE certificate of their suppliers to see if there is a year-on-year improvement in their BEE initiatives regardless of the non-compliant status. This is because of many corporate policies that include the support of sustainable initiatives that benefit previously disadvantaged South Africans.
It is, therefore, clear that the advantages of having a non-compliant BEE certificate outweighs not having a BEE certificate at all.
To find out how SEESA can help your business visit our website at: https://www.seesa.co.za/
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