It is highly recommended to research the BEE certificate before applying for it. Becoming familiar with its benefits is a main priority, but try to determine how to actually respect the requirements as well. The certificate will provide a series of business options later on, but not if you fail to underline its needs. Keep in mind that the rating your business will receive depends on this scorecard. At the same time, it is irrelevant to mention that it is renewed yearly, so there is always room for improvements, but also for downgrades.
Before moving on with the certification, you should learn about the three main classifications for businesses, which depend on the yearly turnover.
Exempt Micro Enterprise
The EME status is given to businesses that make less than R5 million every year. Normally, new businesses in this category will receive the 4 rating, which is practically a middle level between 1 and 8. If the percentage of black shareholders within the management exceeds 50%, the business will begin with a high 3 level. Of course, the rating might increase or decrease overtime, but it also depends on the competition. Therefore, while black shareholding is a main requirement, there are other factors that can influence your score.
Qualifying Small Enterprise
A QSE (Qualifying Small Enterprise) is a business that makes between R5 million and R35 million on a yearly basis. The score is calculated differently. Aside from the black shareholding, the competition is even more important, as well as the status in the relevant market segment. The codes of good practice are not to be ignored either, so you might want to learn a little about the current legislation. There are seven factors on the scoreboard and four of them can be chosen by the business manager. Each of them adds 25% to the final result. Choosing the right criteria can be a serious advantage, so focus on your strongest points.
Finally, the generic enterprise in BEE certification is a company making over R35 million per year. The scorecard depends on all the relevant seven factors, so your word is insignificant. Every element has a specific number of points. Overall, they count 100 points. The higher you score, the better. The final score is given according to these points. Scoring less than 30 points will not bring in a BEE certificate because your business is obviously not good enough to join this category.