Black Business Supplier Development Program


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Black Business Supplier Development Program

  1. 1. BBSDP Black Business Supplier Development Program • Cost sharing Grant • Black owned businesses (>50%) • Improve competitiveness & sustainability • Help become part of mainstream economy • Open until 31 July 2017 BBSDP
  2. 2. Qualifying Criteria • 51% black majority shareholding; • R250 000 to R35 million turnover per year; • 50% management by black people (HDI) • Enterprise formally registered for VAT; • Be operating and trading for at least 1 fin. Yr. BBSDP
  3. 3. Qualifying criteria (cont.) • at the sole discretion of the dti, an enterprise that has been operational/registered for less than a year may be considered for this incentive, provided that the enterprise can supply sufficient evidence to service a tender/contract. BBSDP
  4. 4. How it works • Applicant pays their part + VAT to supplier • Prove of payment to DTI • DTI pays their part. • In exceptional cases, applicant is allowed to pay in full and claim back grant. BBSDP
  5. 5. How much? • Tools, Machinery & Equipment – 50% – maximum R800,000 cumulative (But DTI allows up to R1m). • Interventions – 80% – Maximum R200,000 cumulative • NB: Grant My not exceed 30% of previous yr. turnover BBSDP
  6. 6. Requirements to apply Some of the documents required when applying • Signed financial statements • Three quotes • Tax Clearance Certificate of applicant • Tax clearance certificate of preferred supplier • Proof of available funds • ID’s of owners, management and all workers BBSDP
  7. 7. Examples of qualifying expenses ENTERPRISE SUPPORT SERVICES • Company diagnostics; • Business Plan to raise finance • Management information systems; • Quality management systems and assurance • Patenting and intellectual property rights; • Production and productivity improvements; • Product improvements; BBSDP
  8. 8. Qualifying expenses (cont.) ENTERPRISE SUPPORT SERVICES • BEE rating and certification; and • Merger (majority shareholding) and acquisitions NOTES: 1. Single item applications with new TCC’s and based in Gauteng appear to work best. 2. Expenditure that occur over a period of time appear to be giving most problems. BBSDP
  9. 9. Non qualifying expenses • Office equipment, furniture and computer hardware costs, except for – Business Process Services (BPS) applications; Land and buildings; Working capital; • Training programmes that exceed five (5) weeks or one-hundred and sixty (160) notional hours; • Long-term formal training (e.g. a Master of Business Administration), including training at accredited institutions such as universities; BBSDP
  10. 10. Non qualifying expenses (cont.) • Interventions that are already funded by another government scheme or parastatal; • Any other costs that the Adjudication Committee, in its sole discretion, deems as non-qualifying; and • Design and printing of marketing material • Vehicles (sedans, mini buses and buses , panel vans ,bakkies) BBSDP
  11. 11. Network facilitators • Accredited • DTI pays fees BBSDP
  12. 12. How is this program performing? • Over subscribed. • Could be as quick as 6 weeks, but that is the exception. • Approx. 4 months to process an application • Approx. 4 months to process a claim. • Administration is reasonable BBSDP
  13. 13. Conclusion • A successful program • Can be frustrating in certain cases BBSDP