Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Sector CodesDefence Sector Code12. Eligibility as a Qualifying Small Enterprise |
| 12.1 | Any Measured Entity with a Total Annual Revenue of between R5,000,000 (five million Rand) and R50,000,000 (fifty million Rand) qualifies as a QSE provided its qualification does not arise as a result of circumvention of the relevant Scorecard; |
| 12.2 | Entities that are QSEs must use the Qualifying Small Enterprises Scorecard in this Sector Code; |
| 12.3 | Enhanced B-BBEE recognition level for QSE: |
| 12.3.1 | A Qualifying Small Enterprise which is 100% Black owned qualifies for a Level One B-BBEE recognition; |
| 12.3.2 | Despite paragraph 12.2, a Qualifying Small Enterprise which is at least 51% Black owned qualifies for a Level Two B-BBEE recognition level of 125%; and |
| 12.3.3 | Despite paragraph 12.2, a Qualifying Small Enterprise that is at least 51% Black owned is only required to obtain a sworn affidavit of CIPC issued certificate on an annual basis, confirming the following:— |
| 12.3.3.1 | Annual Total Revenue/Allocated Budget/Gross Receipts of R50,000,000 (fifty million Rand) or less, but not less than R5,000,000; and |
| 12.3.3.2. | Level of Black Ownership. |
| 12.4 | Any misrepresentation in terms of paragraph 12.3 above constitutes a criminal offence as set out in the B-BBEE Act, as amended. |
| 12.5 | Any matter concerning the application of the Qualifying Small Enterprise Scorecard that is not dealt with explicitly in this Sector Code must be dealt with in terms of Codes 100-500 of the Codes. |