- Joined
- Jul 29, 2018
- Messages
- 414
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- 223
So the situation as follows..
Wife and I own a small graphic design studio, its just the two of us, going on 21 years old.
Wife does the design, I do the admin and financials and deliveries etc etc.
Company is small, yes, but profitable, we do not earn bazillions, but hell were ok, pay the rent and schoolfees and petrol & beer money without issues..
We always fit in the EME segment, currently below R10m turnover and therefore automatically level 4 BEE.
However, prior to legislation change we had accreditation as QSE, which is much more expensive, but by virtue of our BEE procurement / Social investment / Black Business investment etc etc we were awarded level 3 BEE QSE status, legitimately, which obviously worked to our advantage, despite its significant costs..
With new legislation I am forced back to Level 4, either as EME or QSE, so obviously I go EME route as it fits into my turnover parameters at no cost..
We are small, but we have some rather large bluechip clients, one of our main clients told us bottom line that if we do not achieve level 2 status, they pull the plug on us.. when this happens, we will close our doors and starve..
My understanding is that level 2 status can be achieved 2 ways..
1. Company becomes 51% black owned and Level 2 is automatic
2. Possibility of QSE scorecard with the inclusion of the YES (Youth Empowerment Services) to see if I can get to level 2 - this is not guaranteed.
Finding a 51% black shareholder is difficult for us, I fear handing over 51% only for it to become a financial burden for us.. I cannot afford an "executive" position that runs the risk of potentially not contributing financially, and once 51% is owned, its no longer mine if this makes simple business sense..
I cannot afford to staff up at management levels (Black) as I simply do not have the means to pay salaries at that end of the scale..
I need help understanding how to go about this process, maybe someone on here has the knowledge and is willing to help, I am willing to pay for proper advice.
I have contacted about 10 accreditation companies, business must be booming for them because i am still waiting for feedback, or they are simply not interested because we are just not financially viable for them..
Surely it cannot just be us in this position, there must be hundreds of similar small / micro businesses out there in our position..??..
Can anyone help at all - Much appreciated - Marco
Wife and I own a small graphic design studio, its just the two of us, going on 21 years old.
Wife does the design, I do the admin and financials and deliveries etc etc.
Company is small, yes, but profitable, we do not earn bazillions, but hell were ok, pay the rent and schoolfees and petrol & beer money without issues..
We always fit in the EME segment, currently below R10m turnover and therefore automatically level 4 BEE.
However, prior to legislation change we had accreditation as QSE, which is much more expensive, but by virtue of our BEE procurement / Social investment / Black Business investment etc etc we were awarded level 3 BEE QSE status, legitimately, which obviously worked to our advantage, despite its significant costs..
With new legislation I am forced back to Level 4, either as EME or QSE, so obviously I go EME route as it fits into my turnover parameters at no cost..
We are small, but we have some rather large bluechip clients, one of our main clients told us bottom line that if we do not achieve level 2 status, they pull the plug on us.. when this happens, we will close our doors and starve..
My understanding is that level 2 status can be achieved 2 ways..
1. Company becomes 51% black owned and Level 2 is automatic
2. Possibility of QSE scorecard with the inclusion of the YES (Youth Empowerment Services) to see if I can get to level 2 - this is not guaranteed.
Finding a 51% black shareholder is difficult for us, I fear handing over 51% only for it to become a financial burden for us.. I cannot afford an "executive" position that runs the risk of potentially not contributing financially, and once 51% is owned, its no longer mine if this makes simple business sense..
I cannot afford to staff up at management levels (Black) as I simply do not have the means to pay salaries at that end of the scale..
I need help understanding how to go about this process, maybe someone on here has the knowledge and is willing to help, I am willing to pay for proper advice.
I have contacted about 10 accreditation companies, business must be booming for them because i am still waiting for feedback, or they are simply not interested because we are just not financially viable for them..
Surely it cannot just be us in this position, there must be hundreds of similar small / micro businesses out there in our position..??..
Can anyone help at all - Much appreciated - Marco
