QUALIFYING SMALL ENTERPRISE (QSE)


Does your enterprise have an annual turnover over R10 and under R50 million?


Qualifying Small Enterprises (Revenue between R10mill and R50mil)

Entities who fall within this category need to be rated on all 5 elements of B-BBEE (As long as the financial period is after 1 May 2015. If the period is before 1 May 2015, the old B-BBEE codes can be applied which allows them to pick 4 of the then 7 B-BBEE elements but only until April 2016. QSEs must qualify as Empowering Suppliers in order to secure a BEE Certificate. 


If the entity is a QSE and has at least 51% Black Ownership, it is considered to be a Level 2 contributor, a B-BEE certificate is not required. Only an affidavit which attests to that. 

If the entity is a QSE and has at least 75% Black Ownership, it is considered to be an automatic Level 1 contributor. No B-BBEE certificate is required. Only an affidavit which attests to that.   

If the entity has less than 51% Black Shareholding, they will need to comply with the fully QSE Scorecard.


They are required to qualify under 1 of the following criteria:

  • At least 25% of costs of sales excluding labour costs and depreciation must be procured from local producers or local supplier in SA (for service industry labour cost are included but capped to 15%)
  • 50% of jobs created are for Black people provided that the number of Black employees since the immediate prior verified B-BBEE Measurement is maintained.
  • At least 25% transformation of raw material/beneficiation which include local manufacturing, production and/or assembly, and/or packaging.
  • At least spend 12 days per annum of productivity deployed in assisting Black EMEs and QSEs beneficiaries to increase their operation or financial capacity.
  • At least 85% of annual payroll to be paid to South Africans.



Qualifying Small Enterprises (QSE SCORECARD)