EME, QSE, or Generic: Which B-BBEE Rules Apply to Your Business?
- Lune Henderson
- Nov 14
- 2 min read
The B-BBEE framework is not a one-size-fits-all system. Your compliance obligations, costs, and a pathway to your certificate are determined by your company's annual turnover. Understanding your category is the first step in any B-BBEE strategy.
There are three main categories of enterprise:
1. Exempted Micro-Enterprise (EME)
Turnover: R10 million or less.
Compliance Rule: You are exempt from formal B-BBEE measurement.
How to Comply: You only need a sworn affidavit (or CIPC certificate) confirming your turnover and Black ownership. You do not need a costly verification audit.
Your Level: You are automatically granted a Level 4 status.
The Bonus: If your EME is 100% Black-owned, you are an automatic Level 1. If it is 51% Black-owned, you are an automatic Level 2.
2. Qualifying Small Enterprise (QSE)
Turnover: Between R10 million and R50 million.
Compliance Rule: This category has two very different paths:
Path A (51%+ Black-Owned): If your QSE is at least 51% Black-owned, you are treated like an EME. You only need a sworn affidavit and are automatically awarded a Level 2 (or Level 1 if 100% Black-owned).
Path B (Less than 51% Black-Owned): You must undergo a full verification audit by a SANAS-accredited agency. You will be measured against the QSE Scorecard and must meet the sub-minimums for at least two priority elements (one of which must be Ownership).
3. Generic (Large) Enterprise
Turnover: R50 million or more.
Compliance Rule: You face the most stringent requirements.
How to Comply: You must undergo a full verification audit against the Generic Scorecard.
The Penalty: You must meet the 40% sub-minimum target for all three priority elements (Ownership, Skills, and ESD) to avoid the discounting penalty.
We Can Help
Whether you are a QSE or a Generic enterprise, White Paper Systems provides the consulting and learnership solutions to maximize your score and ensure full compliance.
Contact us for a consultation to build your B-BBEE strategy. www.whitepaperconcepts.co.za
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