FF Plus launches fund as counter for Black Economic Empowerment (BEE)
7May 2020
The FF Plus today announced a comprehensive project as a counter for Black Economic Empowerment (BEE).
The project entails, among other things, a fund that offers financial support to small business enterprises that cannot qualify for government aid due to BEE requirements.
Another aspect of the project is an initiative launched by the FF Plus Youth, which focuses specifically on the current injustices brought about by BEE. Hundreds of videos from the owners of small business enterprises from across the country that outline their need and dire circumstances have been received.
These stories paint the picture of the disastrous consequences awaiting numerous enterprises that cannot obtain disaster relief due to BEE. They tell the stories of various entrepreneurs who worked hard to build their businesses and who are now unable to pay their employees and meet other financial obligations.
The FF Plus is strongly opposed to race-based legislation and is of the opinion that skin colour cannot be used as a generalised indication of being underprivileged. Thus, skin colour must also not be used as a condition for empowerment.
People and businesses that would qualify for aid according to any means test and that demonstrate the potential to perform are being overlooked based on racial grounds.
There are numerous smaller business enterprises, like sole proprietorships, that cannot meet the BEE requirements. These enterprises were born out of entrepreneurship, irrespective of race, and benefit the entire economy and contribute to job creation and in many cases, these enterprises are the first step to even greater entrepreneurship.
Numerous businesses are facing bankruptcy and ultimate closure and should they disappear from the scene after Covid-19, it would be a severe blow to our chances of speedy economic recovery.
Therefore, the FF Plus has launched the "Stop BEE" project along with the Currently Disadvantaged Business Fund ("HuidigBenadeeldeBesigheidsfonds (HBB-fonds)).
The HBB Fund collects donations to help small business enterprises that do not qualify for government aid in terms of BEE. It will also create a database and a support network for these enterprises.
The fund will initially focus on serving as collateral for soft loans to businesses in the beauty (hair salons, nails salons etc.), hospitality (guest houses, wedding venues etc.) and garden services sectors.
More information regarding the criteria and application process will be announced soon. The Fund will award these loans in cooperation with a registered financial institution.
The long-term objective with this platform is to serve as a post-Covid-19 stimulus for small business development.
In addition, the project aims to tell the stories of the people who are being disadvantaged by the current race-based legislation and bring the devastating consequences it has on these people's lives to the attention of the general public.
A further aspect of the project entails a petition, which can be signed by visiting www.stopbee.co.za.
Persons and institutions are encouraged to donate to the HBB Fund by visiting the following website: www.hbbf.co.za.
Although we find ourselves in the middle of this terrible crisis, it is time to take action and join forces against discrimination and fight for a better future with equal opportunities.
Issued by Pieter Groenewald, FF Plus leader and Tammy Breedt, FF Plus Youth Leader, 7 May 2020
