--- title: "Leading transformation: Demystifying YES and B-BBEE" description: This week, we delve into the nitty gritty of how the YES B-BBEE Level Up benefit can help your business thrive. What is B-BBEE? Strategic broad-based... --- [YES Blog Page ](https://blog.yes4youth.co.za) # [Leading transformation: Demystifying YES and B-BBEE](https://blog.yes4youth.co.za/leading-transformation-demystifying-yes-and-b-bbee) Written by [Admin](https://blog.yes4youth.co.za/author/admin) | October 26, 2021   *In this week’s blog, we delve into the nitty gritty of how the YES B-BBEE Level Up benefit can help your business thrive.*   ``   ## **What is B-BBEE?** Strategic broad-based black economic empowerment (B-BBEE; also known as BEE) management offers business immediate and long-term benefits for those companies willing to embrace it with a holistic and innovative mindset. Good B-BBEE standing can open the door to new clients, contracts and funding opportunities and build a future-focused economic environment by helping address the socio-economic and structural inequalities (read our blog on the role B-BBEE plays in transformation [here](https://blog.yes4youth.co.za/the-role-b-bbee-plays-in-true-transformation)).   ## **Is YES a part of the B-BBEE scorecard?** The YES B-BBEE Level Up Benefit is an element that sits outside of the B-BBEE scorecard, however, participation in YES and receipt of level up(s) is dependent on points on the scorecard. In other words, your business needs to be active in B-BBEE and meet certain sub-minimums in order to change lives and benefit. This blog will take you through what YES does, how to work out your target, and demystifies the B-BBEE element of YES.     ## **What is the B-BBEE scorecard?** The B-BBEE scorecard is a transformation tool driven by compliance. A firm can receive points, improving their levels, based on five elements on the B-BBEE scorecard: Black Ownership, Management Control, Skills Development, Enterprise and Supplier Development (ESD), and Socio-economic Development. For the purposes of this blog, you only need to worry about **Black Ownership, Skills Development and ESD, which are the three priority elements** in which your business needs points to participate in YES.     **But first, how to calculate your YES target: ** YES helps businesses gain up to two levels up on their B-BBEE scorecard in return for placing youth into critical 12-month quality work experiences (either in their own business, or externally through our [Turnkey Solution](https://yes4youth.co.za/yes-turnkey-solution/)). The amount of work experiences a business needs to create is based off **the higher of three calculations**:   Calculate your target [here](https://yes4youth.co.za/4-business/) using our web-based calculator.   At the end of the 12 months, **companies must absorb at least 2.5% of youth on their programme to receive their level up. If you double your target and absorb 5% of youth, you may receive two levels up.**   ****   Find out about our packages and pricing [here](https://yes4youth.co.za/4-business/).   ## **Does my business qualify for YES?** Even with limited or no Black Ownership, your business can qualify for a YES Level Up. Multinationals and family-owned businesses with no Black Ownership can make up for it with higher ESD and Skills points and participate meaningfully in B-BBEE.   All you need is to meet the sub-minimum for your category.   ### **Generic Enterprises** Generic Enterprises are classified as businesses that earn a total revenue above R50 million.     To participate in YES, Generic Enterprises must meet **one **of the following sub-minimum requirements:    1) They need to either achieve a 50% average across three priority elements (**Black Ownership, Skills Development and Enterprise and Supplier Development**), or  2) They must achieve 40% of their sub-minimum requirements in the same priority elements.   How to work this out: - **Option 1: 50% average across three priority elements:** Essentially, Generic Entities must meet a minimum of 50% of targets in the three priority elements listed above.   For Black Ownership, the total target is 8 points. For Skills Development, the total target is 20 points. The total target for ESD is 40 points, bringing the total to 68 points.    **To participate in YES using this sub-minimum, a Generic Enterprise must achieve a minimum of 34 points (68 x 50%) across these elements. **   - **Option 2: 40% of sub-minimum in priority elements** For this sub-minimum, you must have reached at least 40% of each priority element target.    Because the total target for Black Ownership is 8 points, to participate in YES under this sub-minimum, your generic enterprise would need **a minimum of 3.2 points** in this priority element (8 x 40%). Likewise for Skills Development (total target = 20 points), your generic enterprise would only need to have achieved **8 points** in this priority element (20 x 40%).   The third priority element needed under this sub-minimum, ESD, is broken down into three sub-elements:   - Preferential Procurement (25 points x 40% = **10 points** needed) - Supplier Development (10 points x 40% = **4 points **needed) - Enterprise Development (5 points x 40% = **2 points** needed) - Therefore, a total of **16 points** is needed under the Enterprise and Supplier Development element Remember, this is not an average, and your generic enterprise needs to achieve all these minimums in either the Black Ownership + Skills Development combination, (Option 2a) or in the Black Ownership + ESD (Option 2b) element, if you would like to participate in YES under this sub-minimum.   **What do these sub-minimums mean for Generic Enterprises?**   These sub-minimums show that even with limited or no Black ownership, your generic enterprise could still participate in YES, change lives and receive your B-BBEE level up(s).   ### **Qualifying Small Enterprises (QSEs)** QSEs are classified as businesses that earn a total revenue between R10 million and R50 million.     ### Other If you’re an Exempted Micro Enterprise (total revenue below R10 million), an enterprise within the transport sector, or a public/specialised entity, there are no sub-minimum eligibility requirements to participate in YES.     ## B-BBEE is a useful tool for country transformation and company success B-BBEE legislation was implemented as a vehicle to effect socio-economic and structural change within the private and public sectors, as well as in the broader communities they operate in. It is one of the methods through which a business can begin to totally transform.   True macro transformation, however, goes beyond B-BBEE, beyond the office and beyond the micro-environment – requiring holistic, collaborative systems thinking, in order to be achieved.   Using B-BBEE well and strategically can help your business stay competitive and can begin to transform the business and socio-economic landscape of the country, creating a thriving future that works for all.   Many companies are now using the YES programme as a talent pipeline to find talented gems to which they wouldn’t have access otherwise – ensuring fresh and diverse perspectives become the heart of their business.   Join the movement, [calculate your target now](https://yes4youth.co.za/4-business/).   YES is business-led collaboration that seeks out groundbreaking ways, through innovation and technological best practice, to reignite the economy and give youth a dignified first chance. Together with our 1,660+ corporate partners, YES has already created over 65,000 work opportunities for youth in just over two and a half years. This translates to R3.7 billion injected into the economy through youth wallets.    The YES 12-month quality work experience equips unemployed youth with a toolkit to be a beacon of hope for their families, households and communities. The CV & reference letter they get at the end of their 12-months gives them a 3 x greater chance of an interview call-back.   [View full post](https://blog.yes4youth.co.za/leading-transformation-demystifying-yes-and-b-bbee) ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Admin" }, "dateModified" : "2024-02-27T13:55:36.812Z", "datePublished" : "2021-10-26T13:37:39Z", "headline" : "Leading transformation: Demystifying YES and B-BBEE", "image" : { "@type" : "ImageObject", "height" : 477, "url" : "https://f.hubspotusercontent10.net/hubfs/8585911/HEAD.png", "width" : 1200 }, "mainEntityOfPage" : "https://blog.yes4youth.co.za/leading-transformation-demystifying-yes-and-b-bbee", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png", "width" : 60 }, "name" : "YES Blog Page" } } ```