How Do You Get a B-BBEE Level 1?

To achieve B-BBEE Level 1 status, an Exempted Micro Enterprise (EME) must be 100% black-owned.

Achieving B-BBEE Level 1 Status for Exempted Micro Enterprises (EMEs)

For businesses classified as Exempted Micro Enterprises (EMEs), obtaining a B-BBEE Level 1 status is directly tied to their ownership structure. An EME is typically a small business with a specific annual turnover threshold, and they benefit from simplified B-BBEE compliance requirements.

Key Requirements for EMEs

The primary determinant for an EME to achieve a Level 1 B-BBEE status is the extent of black ownership within the entity:

• 100% Black Owned: If an EME is 100% black-owned, it automatically qualifies for B-BBEE Level 1 status. This is the highest possible B-BBEE recognition, indicating maximum contribution to broad-based black economic empowerment.
• 51% Black Owned: An EME that is at least 51% black-owned (but less than 100%) automatically receives a B-BBEE Level 2 status. While not Level 1, this still offers significant benefits.

Documentation Needed

Unlike larger enterprises that require extensive verification processes, EMEs have a straightforward method to prove their B-BBEE status. They only need to obtain one of the following:

• A sworn affidavit confirming their black ownership percentage and EME status.
• A CIPC certificate (Companies and Intellectual Property Commission certificate) that verifies their ownership.

These documents are sufficient to demonstrate their B-BBEE status, simplifying the compliance process significantly for small businesses.

Understanding B-BBEE Levels for EMEs

The table below summarizes how EMEs can achieve different B-BBEE status levels based on their black ownership:

Achieving a B-BBEE Level 1 status is highly beneficial for businesses, as it can enhance their competitiveness, especially when bidding for government tenders or working with larger corporations that prioritize B-BBEE compliant suppliers.