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I RECENTLY visited the startups business network for an observation of business ideology, where I picked up on a fundamentally false attitude.
Today, I would like to dispel the myth that black-owned business need not worry extensively about black economic empowerment (BEE) ratings – an argument development agencies still grapple with when engaging small business, and one that is even contentious at big business gatherings because of the lack of substance in their BEE approach.
The falsehood that BEE is an artificial process for the natural person (identified in the Black Economic Empowerment Act 53 of 2003 as a black person born before 1994) fictitiously puts the BEE process on the back foot.
The illusive tone of (give) ownership has died down, and both big and small businesses need to apply their knowledge on how to present value to a potential BEE partner.
The fears should be set aside because the value base of BEE can be extracted from seven elements provided by the Codes of Good Practice, each of which makes up the total component of partnership formats.
Besides this, industry has to integrate within its corporate strategy the seven prescribed elements in order to be awarded a BEE rating of substance (for example, level 1 to 3) – a phase where the uniball effect of BEE takes place.
I like the abstract nature of the uniball theory as it has a unison component - that is, if you care to move your focus away from unicentricity.
It is a consultant's nightmare to find a converging market drawn along battle lines of racism, because to effect a sound advisory model with sound economic principles, you have to deal with the emotions first.
The media clubs seem to have done little good in their attempt to brand proudly South African citizenry, because the political economic tone has far-fetched and extreme expressions of self-righteousness.
It is then left to us consultants to empathise with the situation, approach the tiger and attempt to balance socioeconomic and business-economic sense. This applies specifically to small businesses which have recently aspired to succeed in business through skin colour.
If I had to juxtapose this, take a look at The Rep Trak Leader SA 2012 survey, which states that leaders who have succeeded in the past predominantly through political clout rather than entrepreneurial initiative are no longer regarded as iconic.
It goes on to quote Dr Dominik Heil, saying: “Despite their philanthropic initiatives, they have failed to convince the public that their involvement in the economy has helped to build a more equitable society or has benefited South Africans at large.
"This provides an opportune moment for a new conversation about making BEE work for those in real need of empowerment.”
To an extent we agree with the survey which fortifies the challenge of ownership fulfilment in capital markets, but it does not mean that this is the demise of the government's intention to merge black and white to bring equality for social change.
It is a challenge for distinguishing methods of transfer between the two parties, hence the argument of whether enterprise development should actually receive more focus instead of ownership fulfilment in your BEE scorecards, and which one to promote in a developing economy that is commodities based.
The argument of promoting one over the other is fartard (a reference to someone of moderate or high intelligence who acts like a retarded person) because if you build in an asset acquisition strategy into a small business plan with regards to guaranteed market access, you accomplish ownership.
So do not rush to give ownership (promotion) as stipulated by Dr Heil's statement, because it has left us with negative beliefs that the captains of industries we chose were not effective.
And if your crowned leaders were unable to uplift communities through acquired ownership, where could they have gone wrong?
Our presumption is that asset control was not substantive for developing products that could have been assumed by the involvement of black markets.
The argument stretches as far as research and development allocation for a comprehensive acquisition strategy in the retail market by black people.
The leaders had a sense of connection not to functionality, but to owner's equity. The lack of substance in many BEE deals articulated by Reputation Institutions needs to be considered for all BEE strategies in business, henceforth.
For this particular reason I ask you to refocus your unicentricity to unison such that the attitude of approach within the strategy can contain your business health.
The same plight of working in unison was heard from the Minister of Trade and Industry Rob Davies, when he was caught saying: “There needs to be a symbiotic relationship between big business and small business in order to yield the mutual beneficial relationships that we all yearn for.”
- Fin24
* Colin Mashikinya is a BEE analyst for BEE Analyst and Associates. Opinions expressed are his own.
Today, I would like to dispel the myth that black-owned business need not worry extensively about black economic empowerment (BEE) ratings – an argument development agencies still grapple with when engaging small business, and one that is even contentious at big business gatherings because of the lack of substance in their BEE approach.
The falsehood that BEE is an artificial process for the natural person (identified in the Black Economic Empowerment Act 53 of 2003 as a black person born before 1994) fictitiously puts the BEE process on the back foot.
The illusive tone of (give) ownership has died down, and both big and small businesses need to apply their knowledge on how to present value to a potential BEE partner.
The fears should be set aside because the value base of BEE can be extracted from seven elements provided by the Codes of Good Practice, each of which makes up the total component of partnership formats.
Besides this, industry has to integrate within its corporate strategy the seven prescribed elements in order to be awarded a BEE rating of substance (for example, level 1 to 3) – a phase where the uniball effect of BEE takes place.
I like the abstract nature of the uniball theory as it has a unison component - that is, if you care to move your focus away from unicentricity.
It is a consultant's nightmare to find a converging market drawn along battle lines of racism, because to effect a sound advisory model with sound economic principles, you have to deal with the emotions first.
The media clubs seem to have done little good in their attempt to brand proudly South African citizenry, because the political economic tone has far-fetched and extreme expressions of self-righteousness.
It is then left to us consultants to empathise with the situation, approach the tiger and attempt to balance socioeconomic and business-economic sense. This applies specifically to small businesses which have recently aspired to succeed in business through skin colour.
If I had to juxtapose this, take a look at The Rep Trak Leader SA 2012 survey, which states that leaders who have succeeded in the past predominantly through political clout rather than entrepreneurial initiative are no longer regarded as iconic.
It goes on to quote Dr Dominik Heil, saying: “Despite their philanthropic initiatives, they have failed to convince the public that their involvement in the economy has helped to build a more equitable society or has benefited South Africans at large.
"This provides an opportune moment for a new conversation about making BEE work for those in real need of empowerment.”
To an extent we agree with the survey which fortifies the challenge of ownership fulfilment in capital markets, but it does not mean that this is the demise of the government's intention to merge black and white to bring equality for social change.
It is a challenge for distinguishing methods of transfer between the two parties, hence the argument of whether enterprise development should actually receive more focus instead of ownership fulfilment in your BEE scorecards, and which one to promote in a developing economy that is commodities based.
The argument of promoting one over the other is fartard (a reference to someone of moderate or high intelligence who acts like a retarded person) because if you build in an asset acquisition strategy into a small business plan with regards to guaranteed market access, you accomplish ownership.
So do not rush to give ownership (promotion) as stipulated by Dr Heil's statement, because it has left us with negative beliefs that the captains of industries we chose were not effective.
And if your crowned leaders were unable to uplift communities through acquired ownership, where could they have gone wrong?
Our presumption is that asset control was not substantive for developing products that could have been assumed by the involvement of black markets.
The argument stretches as far as research and development allocation for a comprehensive acquisition strategy in the retail market by black people.
The leaders had a sense of connection not to functionality, but to owner's equity. The lack of substance in many BEE deals articulated by Reputation Institutions needs to be considered for all BEE strategies in business, henceforth.
For this particular reason I ask you to refocus your unicentricity to unison such that the attitude of approach within the strategy can contain your business health.
The same plight of working in unison was heard from the Minister of Trade and Industry Rob Davies, when he was caught saying: “There needs to be a symbiotic relationship between big business and small business in order to yield the mutual beneficial relationships that we all yearn for.”
- Fin24
* Colin Mashikinya is a BEE analyst for BEE Analyst and Associates. Opinions expressed are his own.
