Qualifying Small Enterprise (QSE)

A business with an annual turnover more than R10 million but less than R50 million qualifies as a Qualifying Smaller Enterprise (QSE). The QSE scorecard was gazetted in May 2015. Please refer to the codes from page 38 in this government gazette for the scorecard. Please note the additional criteria for Empowering Supplier; ki...

A business with an annual turnover more than R10 million but less than R50 million qualifies as a Qualifying Smaller Enterprise (QSE). The QSE scorecard was gazetted in May 2015. Please refer to the codes from page 38 in this government gazette for the scorecard. Please note the additional criteria for Empowering Supplier; kindly refer to page 4 of government gazette 38765

All QSE’s are required to use all 5 elements on the amended BEE Scorecard:

  1. Ownership
  2. Management Control
  3. Skills Development
  4. Enterprise and Supplier Development
  5. Socio-Economic Development

A QSE which is 100% or more black owned automatically qualifies as a Level 1 BEE supplier. A QSE which is 51% Black Owned automatically qualifies as a Level 2 BEE supplier. Therefore a QSE entity of this nature only requires an affidavit in order to state their BEE level and is not required to conduct a full verification.

Please note a QSE for Specialised Enterprises which is 75% or more black owned automatically qualifies as a Level 1 BEE supplier. A QSE which is 51% Black Owned automatically qualifies as a Level 2 BEE supplier. Therefore a QSE entity of this nature only requires a certificate in order to state their BEE level and is not required to conduct a full verification.

QSEs are required to qualify under one of the following criteria in order to receive a QSE certificate;

  • At least 25% of costs of sales excluding labour costs and depreciation must be procured from local producers or local supplier in SA (for service industry labour cost are included but capped to 15%)
  • 50% of jobs created are for black people provided that the number of black employees since the immediate prior verified B-BBEE measurement is maintained.
  • At least 25% transformation of raw material/beneficiation which include local manufacturing, production and/or assembly, and/or packaging.
  • At least spend 12 days per annum of productivity deployed in assisting black EME's and QSE's beneficiaries to increase their operation or financial capacity.
  • At least 85% of labour costs should be paid to South African employees by service industry entities.

Note: if a QSE is not an Empowering Supplier, their suppliers will not be able to claim expenditure spent/preferential procurement points with them when getting verified.

Should you wish to engage with TFS BBBEE Verification Agency to obtain your QSE BEE certificate, please continue with the checkout process, and thereafter we will contact with the necessary preparation of the verification, or certificate issue!

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