BEE Blog 5

Priority Elements and the Sub-Minimum Principle

Three elements of the Codes are considered Core Pillars.  They are:  

1. Ownership

2. Skills Development; and

3. Enterprise and Supplier Development which is further made up of

  1. Preferential Procurement; 
  2. Enterprise Development; and 
  3. Supplier Development.

These Priority Elements each have a target score.  If a company does not achieve 40% of the target in each of these elements – and in each of the three sub-elements of Enterprise and Supplier Development – the company will be discounted one empowerment level. 

The 40% of target minimum score is referred to as a Sub-Minimum.  It ensures that companies do not achieve an acceptable score while neglecting a Priority Element (usually Ownership).