Companies are classed as Exempt Micro Enterprises (EMEs), Qualifying Small Enterprises (QSEs), or Generic Enterprises (GENs) under BBBEE legislation based on their annual turnover. EMEs are the smallest entities, with annual revenues of less than R10 million. QSEs have an annual turnover of between R10 million and R50 million, while GENs have an annual turnover in excess of R50 million. These numbers were updated in 2013, when the BBBEE Codes of Good Practice were altered to improve BBBEE’s effectiveness in transforming South African society. As a result of the modifications, numerous companies that were previously categorized as QSEs are now classed as EMES, as are QSEs that were previously classified as GENs.
For BBBEE accreditation, EMEs face comparatively modest requirements. When EMEs declare their turnover, they automatically get Level 4 BBBEE designation (putting them in the middle of the scorecard’s eight tiers). To do so, they just merely produce a sworn affidavit stamped by a Commissioner of Oaths. The level is then changed based on their percentage of black ownership. EMEs with 51% black ownership are promoted to Level 2, while EMEs with 100% black ownership are promoted to Level 1, placing them at the top of the BBBEE rankings. EMEs are automatically designated as Empowering Suppliers, granting them access to the preferential procurement channel.
What exactly is an EME company?
An Exempted Micro Enterprise’s Definition
The yearly turnover of an Exempted Micro Enterprise (EME) is less than R10 million. Alternatively, some entities have only lately been formed. These will have also been in operation for less than a year. The B-BBEE Scorecard does not include an EME.
What BBBEE level does an EME have?
Level Four Contributor
An Exempted Micro-Enterprise is one that has an annual Total Revenue of R10 million or less (EME). An EME is automatically designated as a “Level Four Contributor” with a B-BBEE recognition level of 100%.
What exactly is an EME certificate?
If your annual revenue is less than R10 million, you qualify as an Exempted Micro Enterprise (EME). The provisions of the B-BBEE Scorecard do not apply to EMEs. This indicates you are already B-BBEE compliant and do not need to implement any BEE measures or make any changes to your firm.
