Introduction

Since 2008 The Hope Factory has assisted over 100 companies in receiving their Enterprise Development points. Thus contributing to Broad Based Black Economic Empowerment in South Africa.

The main objective of Enterprise Development is to assist in creating sustainable business enterprises that achieve growth in order to create jobs and to stimulate the economy. The Hope Factory is a SAICA Enterprise Development programme that seeks to empower and develop the unemployed through a holistic combination of training, development, work experience and mentorship.

According to the BBBEE Codes of Good Practice, companies can earn from 15 to 25 points on their BBBEE Scorecard for Enterprise Development, depending on whether they are Generic Enterprises or Qualifying Small Enterprises.

Overview of the codes

Three BEE categories

EME = Exempted Micro Enterprises (annual turnover of less than R5 million)
QSE = Qualifying Small Enterprises (R5 million - R35 million)
Generic = Generic Enterprises = R35 million plus

Note that as a QSE you would select 4 categories to be rated on, each of which would carry a weighting of 25, totaling 100. If your company falls in the Generic category, you need to fulfill the requirements of all 7 categories, totaling 100.

In order to earn the full 15 or 25 points for that year, companies need to invest 3% of net profit after tax.

Why The Hope Factory?

The Hope Factory has developed more than 700 entrepreneurs over the past nine years, of whom 70% are still financially productive. Investments in The Hope Factory will be used to develop more entrepreneurs and your company will be eligible to claim Enterprise Development Points.

The Hope Factory is acting as a conduit to the ultimate beneficiaries. Your rating agency will therefore want a clear line of sight to see who these beneficiaries are and what their empowerment credentials are.

All of this evidence will be timeously provided for you by The Hope Factory. There will be no last minute hassles of gathering proof - The Hope Factory will deliver all of this to you!

As part of the SAICA group, The Hope Factory has clear governance structures and financial oversight. All money received is used solely for the development of further entrepreneurs.

Proof for rating agency:

At the end of your financial year, The Hope Factory will provide your company with all the relevant evidence and documentation for your rating purposes.

This will include:

1. An affidavit from the beneficiaries stating that they are sole traders, and officially declaring that they are a black South African citizen
2. A copy of the beneficiaries identity documents
3. A copy of the signed MOU and invoice (sent previously)

Points for further interest:

How does the VAT work?

All invoices must include VAT. Points are calculated on the pre VAT amount, but investors can claim the VAT back as per usual.