EMEs and QSEs
Under the amended Construction Sector Code, a contractor with turnover up to R10 million is an exempted micro-enterprise (EME), and up to R50 million a qualifying small enterprise (QSE). For built environment professionals the limits are R6 million and R25 million. Other businesses use the generic codes.
An EME's level follows from its black ownership and is proved with a sworn affidavit. A QSE that is at least 51% black owned can also use an affidavit; any other QSE is measured on the QSE scorecard and verified.
Worked example
A building contractor with R8 million turnover that is 60% black owned is an EME at level 2, with 125% procurement recognition. On a tender that uses B-BBEE level as its specific goal, level 2 often earns 18 of 20 points (80/20) or 9 of 10 (90/10).