If administered correctly, upskilling initiatives for qualifying small enterprises (QSE) can provide up to 40 points on a company’s Broad-Based Black Economic Empowerment (B-BBEE) scorecard. There is however an even bigger opportunity in these kinds of projects according to Gavin Douglas, partner at Mazars, the internationally represented organisation specialising in audit, accounting, tax and advisory services.

“By utilising your enterprise and supplier development (ESD) spend to upskill and support QSEs as a means to secure your own company’s supply chain, the cost actually becomes a significant investment,” Douglas says.

Douglas notes that the most recent generic B-BBEE scorecard stipulates that ESD must amount to a minimum of 3% of a company’s net profit after tax, in order to be able to claim the maximum points available.  â€œBy utilising this ESD spend to upskill and support QSEs within a company’s supply chain, these companies will possibly remain more loyal to you as a customer or supplier. Your company may benefit from better service, cheaper products, better range of products and services,” Douglas continues.

He adds that ESD spend can be used as a branding tool for one’s business. “If qualifying small black businesses know you are supporting and helping them to create sustainable businesses, it could be a great initiative to show that yours is a brand that gives back. Surveys have shown that companies that give back are more likely to succeed in a sustainable manner. Brand loyalty is a great way to grow your contribution to society and your business.”

Douglas states that the Mazars Academy enables QSEs related to a client to understand the strengths, weaknesses and areas of opportunity that enable the QSE to grow to a more sustainable business.

“We also collaborate with black owned firms to deliver the services and skills in order to create and maintain sustainable businesses. Our process begins with an analysis of the client’s supply chain in order to identify QSEs with the maximum benefit from a branding and growth perspective,” Douglas explains.

He states that, once identified and agreed with the client, each QSE conducts a business analysis together with an accredited advisor. “After the analysis, the QSE decides together with the advisor, which projects can be tackled first in order to make the most significant impact. The Mazars Academy also provides public leadership courses, which enables clients to sponsor black managers in order to build better managers and responsible leaders. In addition, we can collaborate with other service providers to implement a skills development strategy within most organisations.”

“We believe that investing in others creates sustainability and good corporate culture and more businesses should take the opportunity to make a difference,” Douglas concludes.