BEE key to winning new business

Johannesburg - Nearly two-thirds of privately held businesses believe black economic empowerment (BEE) is important for winning new business, new research out on Monday reported.

Consulting firm Grant Thornton's annual International Business Report (IBR) found the figure of 63%, was slightly more than 59% recorded in 2008.

A sector analysis revealed that 71% of the construction industry (69% in 2008), 68% of the services industry (68% in 2008) and 63% of the manufacturing industry (52% in 2008) said that BEE contributed to the attraction of new business. However, only 47% of the retail industry shared a similar sentiment, down from 53% in 2008.

Tony Balshaw, managing partner of Grant Thornton Eastern Cape said: "Broad-based BEE implementation has largely remained static over the past 24 months as businesses focus on surviving the tough economic conditions.

"The failure to align public sector procurement with BEE codes, gives credence to the view that the largesse of business continues to propel BEE initiatives," he said.

When asked to rate the importance of each element of the BEE scorecard to their business, respondents rated skills development (48%) and employment equity (39%), highest. Ownership, with 28%, management (26%), corporate social responsibility (25%), affirmative procurement (22%) and enterprise development (20%) followed.

Grant Thornton noted that all elements of the scorecard were rated less important to business than they were in 2008.

- I-Net Bridge