What B-BBEE level is my business likely to be?
Your B-BBEE level depends first on turnover. Under R10 million you are an exempted micro enterprise and level 4 is automatic, or level 1 or 2 where the business is black owned. Between R10 million and R50 million you are a qualifying small enterprise. Above R50 million the full generic scorecard applies.
What is your annual turnover?
Total revenue for the last financial year, before tax.
How this is decided in law
Broad-Based Black Economic Empowerment is measured under the B-BBEE Act 53 of 2003 and the Amended Codes of Good Practice. The first question is never the scorecard — it is size. Turnover determines which regime applies, and for a large number of South African businesses the scorecard never comes into it at all.
An exempted micro enterprise is a business with annual turnover below R10 million. EMEs are exempt from scorecard measurement entirely. Every EME is at least a level 4 contributor; an EME that is more than 51% black owned is a level 2 contributor, and one that is 100% black owned is a level 1 contributor. Status is evidenced by a sworn affidavit in the prescribed form, valid for twelve months, and no verification agency is needed.
A qualifying small enterprise has turnover between R10 million and R50 million. A QSE that is more than 51% black owned may also use the affidavit route and qualifies as a level 2 contributor, or level 1 where it is 100% black owned. A QSE that is not majority black owned is measured on the QSE scorecard and needs a verification certificate from a SANAS accredited agency.
Above R50 million turnover the generic scorecard applies. It measures five elements: ownership, management control, skills development, enterprise and supplier development, and socio-economic development. Points are awarded per element and bonus points are available, so a total above 100 is achievable and is what a level 1 requires.
Three of the five elements are priority elements: ownership, skills development, and enterprise and supplier development. A measured entity must achieve at least 40% of the available points on the sub-minimum within each. Fail one and the discounting principle applies — the entity drops one level below the level its total points would otherwise earn. For many businesses, fixing a single failing sub-minimum is worth more than months of general scorecard work.
Sector codes displace the generic codes where they apply. There are gazetted sector codes for construction, tourism, property, agriculture, information and communication technology, financial services, transport, forestry and others, and each has its own weightings and thresholds. Applying the generic codes to a business that falls under a sector code produces a wrong answer, so establishing which code governs comes before any scoring.
Fronting is a criminal offence. Ownership structures that give black shareholders paper rights without economic interest, voting control or genuine participation are attacked by verification agencies and by the B-BBEE Commission, and a misrepresentation in an affidavit or a verification carries penalties under section 13O of the Act. Structures we implement are designed to survive scrutiny, which means real economic interest, real voting rights and documentation that matches the commercial reality.
Our B-BBEE work is quoted as a fixed fee agreed in writing before we start, whether that is a sworn affidavit for an EME or a full generic scorecard strategy. This estimator gives you an indication only. Actual levels depend on verified evidence for the specific measurement period, on the applicable sector code and on the detail of your ownership structure.
| Turnover | Classification | Black ownership | Likely level | Evidence required |
|---|---|---|---|---|
| Under R10 million | Exempted micro enterprise | 100% | Level 1 | Sworn affidavit |
| Under R10 million | Exempted micro enterprise | More than 51% | Level 2 | Sworn affidavit |
| Under R10 million | Exempted micro enterprise | Under 51% | Level 4 | Sworn affidavit |
| R10m – R50 million | Qualifying small enterprise | 100% | Level 1 | Sworn affidavit |
| R10m – R50 million | Qualifying small enterprise | More than 51% | Level 2 | Sworn affidavit |
| R10m – R50 million | Qualifying small enterprise | Under 51% | QSE scorecard result | Verification certificate |
| Over R50 million | Generic enterprise | Any | Generic scorecard result | Verification certificate |
| Any | Any | Priority sub-minimum failed | One level lower | Discounting principle applies |
The process, step by step
- 1Classification
We confirm your turnover band, whether a sector code applies, and therefore which measurement regime governs you.
- 2Ownership analysis
The shareholder register, trust deeds and any empowerment structures are tested for real economic interest and voting rights.
- 3Baseline scoring
Where a scorecard applies we score your current position element by element so the starting point is a fact rather than an estimate.
- 4Costed plan
We set out the cheapest route to the level your buyers require, including which priority sub-minimum to fix first.
- 5Implementation
Ownership structures, skills programmes and supplier development arrangements are documented so they are verifiable, not just intended.
- 6Affidavit or verification
We issue the sworn affidavit, or prepare the evidence pack and manage the SANAS accredited agency through to certificate.
Questions people ask
Do I need a B-BBEE certificate if my turnover is under R10 million?
No. An exempted micro enterprise uses a sworn affidavit in the prescribed form, valid for twelve months. No verification agency and no certificate are required.
Is every small business automatically level 4?
Every EME is at least level 4. More than 51% black ownership makes it level 2, and 100% black ownership makes it level 1, still on affidavit only.
What is the discounting principle?
If you fail the 40% sub-minimum on any priority element — ownership net value, skills development, or enterprise and supplier development — your final level is one lower than your points would otherwise give you.
Which turnover figure is used?
Total annual revenue for the measurement period. Group structures need care, because turnover may be measured across the group rather than per entity depending on the arrangement.
Does a sector code change my level?
It can change it substantially. Sector codes have their own weightings, thresholds and in some cases their own turnover bands, and they displace the generic codes for businesses in that sector.
Can I improve my level without selling equity?
Yes, on the scorecard elements — skills development, supplier development and socio-economic development all carry points. Ownership is usually the fastest lever, but it is not the only one.
What are the risks of overstating my status?
A misrepresentation in an affidavit or verification is an offence under the B-BBEE Act, with penalties including fines calculated on turnover and exclusion from state procurement.
How accurate is this estimator?
It gives a reliable indication of your classification and the likely level band. A verified level depends on evidence for the specific measurement period, the applicable sector code and your ownership detail.
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This page is general information on the applicable legislation, not legal advice on your specific facts. Fee ranges are indicative; your fixed fee is agreed in writing before any work starts.