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Black Economic Empowerment for small businesses.

Black Economic Empowerment for small businesses.

Published in: Business, Technology
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  • 1. EME - Exempt Micro Enterprise  Any business with an annual turnover of less than R5million pa qualifies as an Exempted company in accordance with the BBBEE Act.  An EME certificate is recognised as proof of an exemption status by all large companies as well as government establishments.  EME’s are automatically allocated a level 4 BEE score. Any procurement from a level 4 can be claimed at the rate of 100% of any qualifying spend with your company. However if your company is more than 50% black owned (male or female) it can increase your level by one category – level 3. Any procurement from your company can be claimed at the rate of 110% of any qualifying spend from other suppliers. You are exempt from filling out a scorecard which is normally required by a verification agency.  An EME certificate is also valid for 12 months meaning you do not need to get a letter every time it is requested by Suppliers.  Large companies are encouraged to spend with small business, so by getting your EME certificate you guarantee making yourself a lot more competitive.  By having an EME certificate you can assist your main customers in optimizing their BEE scorecard.  The BEE codes are all about creating employment. Therefore if your wages added to your NPBT exceeds 25% of your turn over you will qualify as a Value added supplier. Russell Florence – 081 581 6998 - 011 4731979 - -
  • 2. You will be provided with the following documentation in your EME Pack:Exemption Statement:A document that states that your company subscribes to the Broad Based Black EconomicEmpowerment Codes of Good Practice in terms of Government Gazette no.29617 published on 9 thFebruary 2007.Statement to Customers Regarding Procurement:An additional document specifying that Generic companies can earn an additional 3 points on theirProcurement scorecard by spending 10% of their total procurement with EMEs or QSEs. Your companywill fall part of that classification and will therefore be included in that category. You will also fall intothe Black Ownership category that makes up an additional 5 points with a target of 15%.BEE Policy:A document stating that your company chooses to follow the Codes of Good Practice in terms ofGovernment Gazette no. 29617 published on 9th February 2007. It states what industry you operate inand that your company intends to make a meaningful contribution towards B-BBEE.BEE Certificate:A certificate signed by your Accounting Officer stating your annual turnover is less than 5 million as wellas your shareholding breakdown.It’s really a simple process, with info processed in a day. Attached please find your EME Questionnaireneeded to complete you BEE accreditation. Russell Florence – 081 581 6998 - 011 4731979 - -