Under the generic Codes of Good Practice, a business with annual turnover below R10 million is an Exempted Micro Enterprise and needs only a free sworn affidavit. Between R10 million and R50 million it is a Qualifying Small Enterprise and generally needs a paid verification certificate — unless it is more than 51% black owned, in which case an affidavit is also acceptable. Above R50 million, a full verified scorecard applies.
The step from affidavit to verified certificate involves real cost and weeks of lead time, which is why a business approaching R10 million should plan for it rather than discover it mid-tender.
The three categories
| Category | Annual turnover | What you need |
|---|---|---|
| Exempted Micro Enterprise (EME) | Below R10 million | Sworn affidavit — free |
| Qualifying Small Enterprise (QSE) | R10m – R50m | Verification certificate, or an affidavit if more than 51% black owned |
| Generic enterprise | Above R50 million | Full verified scorecard |
Sector charters override the generic codes. Construction, ICT, tourism, agriculture, property, financial services, transport and others have their own charters with different thresholds. Check the one applicable to your industry before relying on these figures.
What each category gets automatically
EME
Automatically Level 4 with 100% recognition, regardless of ownership.
| Black ownership | Level | Recognition |
|---|---|---|
| Any, including 0% | Level 4 | 100% |
| More than 51% | Level 2 | 125% |
| 100% | Level 1 | 135% |
No scorecard, no verification, no cost. See what is a B-BBEE affidavit.
QSE
More than 51% black owned: treated similarly to an EME on ownership, and may use a sworn affidavit. A QSE that is 100% black owned is generally recognised at Level 1, and one more than 51% black owned at Level 2.
Otherwise: a QSE scorecard applies, measured across the elements of the generic codes in their QSE form, and verified by a SANAS-accredited verification agency.
Generic
Full scorecard across all elements, verified annually. A different exercise entirely, with meaningful internal cost.
What crossing R10 million actually costs
This is the planning point.
| EME | QSE requiring verification | |
|---|---|---|
| Document | Sworn affidavit | Verification certificate |
| Cost | Free | A paid engagement with a SANAS-accredited agency |
| Time | About an hour | Weeks — evidence gathering, review, site visit, report |
| Evidence required | Turnover and ownership | Scorecard evidence across multiple elements |
| Renewal | Annual, free | Annual, paid |
The lead time is the real issue. A verification cannot be produced in the week a tender closes. If your turnover is approaching R10 million, start the conversation with an agency a quarter before you cross it.
Note the exception that matters: a QSE more than 51% black owned avoids this entirely and can continue on an affidavit. For a business near the threshold, that ownership position has direct commercial value.
Why the level matters commercially
Your B-BBEE level feeds your customer's preferential procurement scorecard.
A customer buying from a Level 1 supplier counts 135% of what they spend towards their own procurement targets. From a Level 4 supplier, 100%. From a non-compliant supplier, nothing.
That is a genuine reason a corporate would choose you over a competitor at the same price — and it is worth stating explicitly on your website, in proposals and on your invoices.
Where it is decisive: government tenders, corporate supplier onboarding, and enterprise and supplier development programmes, which target EMEs and QSEs specifically.
Turnover is measured on annual total revenue
Use your annual financial statements, not an estimate, particularly if you are near a threshold. The affidavit is a sworn statement and getting the figure wrong is a serious matter.
Where turnover fluctuates across the threshold, take advice on which measure applies rather than assuming.
Improving your level
Three levers actually move an SME's level.
Ownership. The most direct. Moving above 51% black ownership takes an EME to Level 2 and a QSE onto the affidavit route.
Enterprise and supplier development spend. Supporting qualifying suppliers and small enterprises earns points, and for a QSE this is often the most cost-effective element.
Skills development. Training spend on qualifying learners, which frequently overlaps with the Employment Tax Incentive and section 12H learnership allowances you may already be claiming. See the Employment Tax Incentive explained.
What does not work: fronting arrangements — appointing black shareholders or directors who do not exercise genuine control or receive genuine economic benefit. This is specifically prohibited, it is investigated by the B-BBEE Commission, and the consequences are serious.
Frequently asked questions
What is the difference between an EME and a QSE? Under the generic codes, an Exempted Micro Enterprise has annual turnover below R10 million and needs only a free sworn affidavit. A Qualifying Small Enterprise has turnover between R10 million and R50 million and generally needs a verified certificate, unless it is more than 51% black owned, in which case an affidavit is also acceptable.
What B-BBEE level is an EME? Automatically Level 4 with 100% recognition regardless of ownership, rising to Level 2 with 125% recognition where more than 51% black owned, and Level 1 with 135% recognition where 100% black owned.
What happens when my turnover crosses R10 million? You become a QSE. Unless you are more than 51% black owned, you will generally need a verification certificate from a SANAS-accredited agency, which is a paid engagement taking weeks. Start the process before you cross the threshold rather than during a tender.
Do sector charters change these thresholds? Yes. Construction, ICT, tourism, agriculture, property, financial services, transport and other sectors have their own charters with different thresholds and requirements, and where a charter applies it overrides the generic codes.
Why does my B-BBEE level matter to customers? Because it feeds their preferential procurement scorecard. A customer buying from a Level 1 supplier counts 135% of the spend towards their own targets, against 100% for Level 4 and nothing for a non-compliant supplier — which is a genuine reason to choose you at equal price.
How can a small business improve its B-BBEE level? The three levers that move an SME's level are ownership, enterprise and supplier development spend, and skills development. Fronting arrangements are prohibited, investigated by the B-BBEE Commission, and carry serious consequences.
Know which category you are in, and when that changes
The affidavit route is free and takes an hour. The verification route is neither. The businesses that get caught are the ones that cross R10 million without noticing until a tender asks.
Smartbook produces the annual financial statements that establish your turnover position, generates the B-BBEE affidavit free for clients, and flags when growth is about to change your category.
Last reviewed: 26 July 2026. Written by the Smartbook team — SAIPA and SAICA accredited, SARS registered tax practitioners. Thresholds shown are under the generic Codes of Good Practice. Sector charters differ — confirm the codes applicable to your industry. B-BBEE structuring should be undertaken with specialist advice. General guidance, not advice on your circumstances.
Primary sources: Department of Trade, Industry and Competition — B-BBEE · B-BBEE Commission · SANAS · Broad-Based Black Economic Empowerment Act 53 of 2003 and Codes of Good Practice