Broad-Based Black Economic Empowerment (B-BBEE) requirements for small businesses in South Africa start with two questions: which B-BBEE code applies to your business, and what was your annual revenue? Under the General Codes, an Exempted Micro Enterprise (EME) normally has annual revenue of R10 million or less, while a Qualifying Small Enterprise (QSE) sits above R10 million and up to R50 million. Sector codes can use different thresholds, so turnover alone is not enough.
Key Takeaways
- Under the General Codes, an EME has annual revenue of R10 million or less and can generally use a sworn affidavit or qualifying CIPC certificate.
- A QSE has annual revenue above R10 million and up to R50 million under the General Codes.
- A QSE that is at least 51% black owned can use enhanced recognition rather than the full QSE scorecard.
- A B-BBEE affidavit is generally valid for 12 months from the date it is commissioned.
- A sector-specific B-BBEE code may change the thresholds or measurement rules, so identify the applicable code first.
- Businesses approaching the next turnover band should plan before year-end, when there is still time to influence legitimate scorecard outcomes.
What are the B-BBEE requirements for small businesses?
Under the General Codes, annual revenue determines whether a business starts as an EME, QSE or Generic Enterprise. The B-BBEE Commission confirms the EME and QSE framework, while the official QSE affidavit uses the R10 million to R50 million revenue band.
| Category under General Codes | Annual revenue | Typical route |
|---|---|---|
| Exempted Micro Enterprise (EME) | R10 million or less | Sworn affidavit or qualifying CIPC certificate |
| Qualifying Small Enterprise (QSE) | Above R10 million up to R50 million | Affidavit for qualifying 51%+ black-owned entities; otherwise QSE scorecard |
| Generic Enterprise | Above R50 million | Formal scorecard measurement |
For EMEs under the General Codes, black ownership affects the recognised level. A 100% black-owned EME receives Level 1 recognition, an EME that is at least 51% black owned receives Level 2, and an EME below 51% black ownership receives Level 4.
For QSEs, ownership changes the route. A QSE that is at least 51% black owned can use enhanced recognition. A QSE below that threshold is measured against the applicable QSE scorecard.
The common mistake is treating turnover as the only test. It is not. First identify the correct code, then apply its thresholds.
Does every business use the R10 million B-BBEE threshold?
No. The R10 million EME threshold and R50 million QSE ceiling are the General Codes position. South Africa also has sector-specific B-BBEE codes, and a business covered by one of those codes must follow that framework instead. The B-BBEE Commission lists sector codes as part of the national B-BBEE system.
A company can have the correct turnover figure and still use the wrong affidavit or scorecard by choosing the wrong code.
Before preparing any B-BBEE document, answer five questions:
- What is the company’s main business activity?
- Is that activity covered by a current sector code?
- What was annual revenue for the relevant financial period?
- What is the company’s black ownership percentage?
- Does that combination qualify for enhanced recognition or require scorecard measurement?
Businesses with mixed activities need particular care. The applicable code must follow the relevant measurement rules and actual business activity.
If your team is unsure whether the company is an EME, QSE or subject to a sector code, book a B-BBEE classification review with M&J Consultants. We confirm the correct route, identify the evidence required and help you avoid paying for the wrong process.
When can a small business use a B-BBEE affidavit?
A qualifying EME can generally establish its B-BBEE status through a sworn affidavit, while qualifying black-owned QSEs can also use the affidavit route. The B-BBEE Commission states that EMEs do not need full scorecard verification and that qualifying QSEs with the required black ownership can rely on a sworn affidavit.
The affidavit records facts such as the enterprise details, annual revenue band and black ownership percentage. It must be signed in the prescribed manner before a Commissioner of Oaths. Official affidavit templates state that the document is valid for 12 months from the date it is commissioned.
Government guidance on affidavit evaluation points to supporting documents such as ownership records, identity documents and financial information.
Before renewing an affidavit, check whether revenue crossed a threshold, shareholding changed or another code became applicable. If any of those facts changed, the correct B-BBEE route may have changed too.
For a qualifying business, an affidavit avoids unnecessary formal verification. But it only works when the business actually qualifies and the declaration is accurate.
What happens when a QSE is not 51% black owned?
A QSE that does not meet the enhanced-recognition ownership threshold must be measured against the applicable QSE scorecard. At that point, B-BBEE becomes a management issue rather than a once-a-year documentation exercise. Under the broader framework, ownership, skills development, and enterprise and supplier development are priority areas.
Depending on the applicable code, measurement can include:
- ownership;
- management control;
- skills development;
- enterprise and supplier development, including preferential procurement; and
- socio-economic development.
The exact scorecard and targets must be checked against the code that governs the company. Sector codes can differ. Official B-BBEE Commission reporting on the financial sector, for example, shows additional sector-specific elements beyond the standard General Codes structure.
This is why last-minute B-BBEE planning is weak. Training spend, supplier choices and ownership arrangements are created during the year. They cannot be credibly reconstructed after the measurement period closes.
A growing QSE should therefore review B-BBEE alongside its annual budget, procurement plan and skills programme. That gives management time to make commercially sound decisions that also support the required scorecard.
Why does B-BBEE status matter to a small business?
For most private businesses, B-BBEE is not a general licence required simply to trade. Its commercial importance comes from procurement, supplier onboarding and market access. The South African National Accreditation System describes B-BBEE verification as supporting access to preferential procurement opportunities in both public and private sectors.
For a small supplier, this can influence how attractive it is to a larger customer. Under enterprise and supplier development, measured companies pay attention to the B-BBEE status and ownership profile of suppliers. The B-BBEE Commission identifies preferential procurement as a mechanism that can support market access for black-owned businesses.
A consumer-facing retailer may have a different commercial requirement from a facilities company bidding for corporate contracts.
Ask a simpler question: who do you want to sell to over the next 12 to 24 months?
If the growth plan includes major corporates, public-sector opportunities or formal vendor panels, B-BBEE becomes part of the sales strategy. If customers do not use B-BBEE in procurement, the commercial urgency may be lower.
How should small businesses plan for B-BBEE requirements?
Review your B-BBEE position before the financial year closes. Once revenue pushes the business into a new category, the evidence and operating decisions needed for the next route may already need to be in place.
Consider Mokoena Office Supplies (Pty) Ltd. It records annual revenue of R8.4 million and is 60% black owned. Assuming the General Codes apply, it is an EME and qualifies for Level 2 enhanced recognition using the appropriate affidavit or qualifying CIPC route.
A year later, revenue grows to R24 million while black ownership remains at 60%. The company is now a QSE under the General Codes, but its ownership level still allows enhanced recognition without full QSE scorecard measurement.
Change one fact. If black ownership falls to 40% while revenue remains R24 million, the company no longer qualifies for the 51% black-owned QSE affidavit route. It must prepare for QSE scorecard measurement under the applicable code.
That change affects recordkeeping, procurement, training and planning. The lesson is simple: track revenue and ownership together, and reassess your B-BBEE category before growth forces the issue.
Conclusion: make B-BBEE part of your growth plan
B-BBEE requirements for small businesses in South Africa are manageable when management gets three things right: the applicable code, the revenue category and the ownership position. Under the General Codes, many EMEs and qualifying black-owned QSEs can establish their status without full scorecard verification.
The bigger risk is waiting until a tender or corporate onboarding process exposes a gap. By then, the measurement period may already be closed.
Review your position whenever revenue grows, ownership changes or the company enters a new sector. That keeps your B-BBEE evidence aligned with the business you are actually building.
If a customer has asked for a B-BBEE affidavit, certificate or verification result and you are unsure what applies, book a B-BBEE review with M&J Consultants. We confirm the correct route and give you a practical document checklist before you commit to unnecessary verification costs.
Frequently Asked Questions
Does an EME need a B-BBEE certificate in South Africa?
Under the General Codes, an EME generally does not need full scorecard verification. The B-BBEE Commission states that EMEs can use a sworn affidavit or an applicable CIPC certificate to demonstrate status. The company must still confirm that the correct code and revenue threshold apply.
How long is a B-BBEE affidavit valid?
A B-BBEE sworn affidavit is generally valid for 12 months from the date it is commissioned. Official affidavit templates confirm this period. Before renewing, check whether revenue, ownership or the applicable code has changed.
Can a QSE use a B-BBEE affidavit?
Yes. Under the General Codes, a QSE that is at least 51% black owned can use enhanced recognition and the affidavit route. A QSE below that ownership threshold normally requires measurement against the applicable QSE scorecard.
Is B-BBEE compulsory for every South African business?
B-BBEE is not a general trading licence for every private company. Its practical importance rises when a business supplies government, public entities or larger companies that use B-BBEE in procurement and supplier-development decisions.
Who can issue a formal B-BBEE verification certificate?
Where formal verification is required, use a properly accredited B-BBEE verification agency and confirm its current accreditation status. The South African National Accreditation System maintains the accreditation framework and publishes information used to verify agency status.
