Do all business entities have to be BBBEE compliant?
Only business enterprises (those classified as “Exempted Micro Enterprises”) with an annual turnover of R5 Million and less will be exempted. Such entities will automatically be recognized as Level Four BBBEE Contributors with a procurement recognition level of 100%.
Start-up enterprises are Exempted Micro-Enterprises for the FIRST YEAR following their formation or incorporation regardless of their expected revenue. Tendering for contracts above R5 million does require Scorecard submission.
Businesses that are not exempt fall into one of two categories:
i) Those with an annual turnover between R5 Million and R35 Million are measured under the QUALIFYING SMALL ENTERPRISES (“QSE”) codes.
ii) Those with a turnover of R35 Million and above are measured under the GENERIC SCORECARD codes.