B-BBEE Level for Small Business: EME, QSE and How to Find Yours
If you sell to government or large corporates in South Africa, someone will eventually ask: "What is your B-BBEE level?" For small businesses the answer is often simpler than expected — but only if you know which category you fall into.
First, which category are you?
Under the Codes of Good Practice, businesses are categorised by annual turnover:
| Category | Annual turnover (approx.) |
|---|---|
| EME — Exempted Micro Enterprise | Up to R10 million |
| QSE — Qualifying Small Enterprise | R10 million to R50 million |
| Generic | Above R50 million |
Most small businesses reading this are EMEs or QSEs.
EMEs: the simplest route
An EME is deemed to be Level 4 by default, with a recognition level of 100%. It can be raised based on black ownership:
- 100% black-owned: Level 1
- At least 51% black-owned: Level 2
- Less than 51% black ownership: Level 4
An EME does not need to go through a verification agency. It normally proves its status with a sworn affidavit (see below).
QSEs: a scorecard, with some shortcuts
A QSE is measured on a scorecard covering ownership, skills development, enterprise and supplier development, and so on. A QSE that is 100% black-owned can also qualify for Level 1, and one that is at least 51% black-owned for Level 2, in a similar way to an EME.
Other QSEs normally need a B-BBEE certificate from an accredited verification agency.
The sworn affidavit
For EMEs (and some QSEs, per the Codes), a sworn affidavit is the accepted proof. In general it:
- is signed by the business owner or a director,
- states the annual turnover and the percentage of black ownership,
- is commissioned by a Commissioner of Oaths,
- is usually valid for 12 months, so it needs renewing every year.
Many tenders specify the exact format they want, so check the tender document.
Do not sign anything you cannot substantiate. Giving false information in a B-BBEE affidavit has legal consequences.
What if I am not black-owned?
A business with no black ownership still gets recognised, just at a lower level (typically Level 4 for an EME). That is often enough for tenders without a hard requirement, but buyers who want to improve their own scorecards may prefer higher-level suppliers. Practical ways to improve over time include supplier development, skills development and, where it makes commercial sense, ownership partnerships — taken with proper advice.
Why your level matters to buyers
Large buyers count spend with B-BBEE-compliant suppliers toward their own scorecard (preferential procurement). In government tenders, your level also converts into preference points in the evaluation. A higher level makes you more attractive; a missing or expired document can disqualify you entirely.
How to prepare
- Confirm your turnover category.
- Document your ownership — keep share certificates or the share register current.
- Calendar the affidavit or certificate expiry date.
- Keep supporting evidence (skills spend, supplier development) if you are a QSE.
BusinessReady SA's free self-assessment shows where you stand on B-BBEE readiness and which evidence is missing. It is a self-check tool and does not issue an official B-BBEE certificate.
This article is general information, not legal or accounting advice. Rules are updated from time to time — confirm current requirements with the Department of Trade, Industry and Competition or a qualified professional.