Do You qualify as an EME?

03 Mar Do You qualify as an EME?

According to the BEE Codes there are many businesses that possibly qualify to become an EME (Exempt Micro Enterprise) and are not aware of it.

The current BBBEE codes state that an exempt micro enterprise is one that has a turnover of less than R5 million per annum.


EME’s are deemed to have BBBEE status of a level 4 contributor having a procurement recognition of 100%.   If you are a qualifying EME you will automatically receive an allocation of 65 points and will be recognized as a 100% BEE Company for procurement purposes.

It is also important to bear in mind that if your business is black-owned, you will then be deemed to have a Level 3 status. As an EME you will be exempt from usual compliance requirements that other businesses with a higher turnover (over R5 Million) are required to have in order to reach Level 4 status.

There are many viable reasons for EMEs to engage in B-BBEE and where possible aim to raise their status to a higher level.

There are many benefits to qualifying with a higher level.  The clients of Level 3 or Level 4 EME’s can get recognition whenever they spend with you. This could not only benefit your client but also encourage them to do more business with you. This can give your business a competitive edge.

There will be continued encouragement for businesses to embrace BEE while growing their business. With the ability to compete for contracts and tenders many business owners should investigate or get assistance to check if they do indeed qualify to become an EME.

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