Elements & Scorecards
Depending on the previous year’s revenue, a company is categorised either as Exempt Micro Enterprise (EME under ZAR 10m), Qualifying Small Enterprise (QSE between ZAR 10m and ZAR 50m) or Large Enterprises (Generic over ZAR 50m).
The basic scorecard to calculate a BEE rating based on the points achieved in the previous year comprises of five elements, three primary and two secondary:
- Ownership (primary)
- Management Control (secondary)
- Skills Development (primary)
- Supplier & Enterprise Development (primary)
- Socio-Economic Development (secondary)
While EME are graded based only on “Ownership”, QSE require to achieve reduced targets within the scorecard elements and large enterprises need to reach all targets and score points in all five elements. The outcome for QSE and Generic Scorecard calculations is a score between 0 and 100 and in turn recognises BEE Levels between 8 (worst) and 1 (best).
QSE and GENERIC scorecards now differentiate between primary and secondary elements. While secondary elements are treated as before, primary elements now contain sub-minimum targets, which equate to 40% of the general targets of the element. If a company fails to reach at least the sub-minimum target, it will be downgraded a whole recognition level in the end.