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Exempted Micro-Enterprise (EME)

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Entities with an annual revenue of R10 million or less automatically qualify as Exempted Micro-Enterprise (EME). These entities are deemed to have a broad-based BEE Status of “Level Four Contributor”, with a Procurement Recognition level of 100 per cent. If the entity is more than 51 per cent owned by black people then the EME qualifies for promotion to a status of “Level Two Contributor” having a Procurement Recognition level of 125 per cent.

An EME is only required to obtain a sworn affidavit on an annual basis confirming the following:

•Annual total revenue of R10 million or less; and

•Level of Black ownership.

Any misrepresentation in terms of the above paragraph constitutes a criminal offense as set out in the Broad Based Black Economic Empowerment Act as amended.

Exempted Micro-Enterprises are allowed to be measured using the QSE Scorecard should they wish to maximise their points and move to a higher procurement recognition level. In a competitive broad-based BEE sensitive environment Exempted Micro-Enterprise operating companies will probably be better off electing to be measured using the QSE Scorecard.

Broad-Based BEE

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