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 each category 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).
