Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Sector CodesDefence Sector Code11. Eligibility as an exempted Micro-Enterprise |
| 11.1 | Any Enterprise with an annual Total Revenue of R5,000,000 (five million Rand) or less qualifies as an Exempted Micro-Enterprise. |
| 11.2 | An Exempted Micro-Enterprise is deemed to have a B-BBEE Status of "Level Four Contributor" having a B-BBEE recognition level of 100%. |
| 11.3 | Enhanced B-BBEE recognition level for an Exempted Micro-Enterprise: |
| 11.3.1 | despite paragraph 11.2 an EME which is 100% Black Owned qualifies for elevation to "Level One Contributor" having a B-BBEE recognition level of 135%; |
| 11.3.2 | despite paragraphs 11.2 and 11.3.1, an EME which is at least 51% Black owned qualifies for elevation to "Level Two Contributor" having a B-BBEE recognition level of 125%; and |
| 11.3.3 | despite paragraphs 11.2 and 11.3, an EME is allowed to be measured in terms of the QSE scorecard should they wish to maximize their points and move to a higher B-BBEE recognition level. |
| 11.4 | An EME is only required to obtain a sworn affidavit or Companies and Intellectual Property Commission (CIPC) issued certificate confirming the following: |
| 11.4.1 | annual total Revenue/Allocated Budget/Gross Receipts of R5,000,000 (five million Rand) or less; and |
| 11.4.2 | level of Black Ownership. |
| 11.5 | Any misrepresentation in terms of Paragraph 11.3 above constitutes a criminal offence as set out in the Act as amended from time to time. |