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What is BEE Certification?

BEE in a nutshell - Categories of enterprises

categoryannual turnoverscorecard compliance
exempt micro enterprise< R5 millionAutomatic BEE compliance irrespective of ownership
Automatic Level 4 status - 100% BEE recognition (Table 2)
Qualifying small enterprise (QSE)R5 million - R35 millionScore on 4 out of 7 elements using QSE Codes (Table 1)
generic enterprise>R35 millionScore on all 7 elements using Generic Codes (Table 1)

table 1

BEE Scorecard QSE (Turnover R5 - R35 million) Generic (Turnover > R35 million) Requirements to achieve
Element Points Points Targets
Ownership 58 20 25% of company black owned
Management 25 10 50.1% management are black
Employment Equity 25 15 40% - 70% of staff are black
Skills Development 25 15 2% - 3% of payroll used to train black staff
Preferential Procurement 25 20 40% - 50% of purchases from BEE companies
Enter[rise Development 25 15 2% - 3% of NPAT spent on black enterprises
Socio-Economic Development 25 5 1% of NPAT spent on black social programmes

table 2

The points scored out of 100 by QSE and Generic businesses are converted into a BEE status level set out below

BEE Status BEE Points  
Level One > 100 Points 135 %
Level Two > 85 but < 100 125%
Level Three > 75 but < 85 110%
Level Four > 65 but < 75 100%
Level Five > 55 but < 65 80%
Level Six > 45 but < 55 60%
Level Seven > 40 but < 45 50%
Level Eight > 30 but < 40 10%
Non Compliant < 30 0%
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