Qualifying Small Enterprises

Qualifying Small Enterprises (QSEs) are part of one of the categories of South African businesses as per the Broad Based Black Economic Empowerment Act.

Traditionally Top Management of QSEs are the directors and executives, those who are involved in the strategic leading and decision making within the enterprise.

(Large enterprises look only at employees in management positions to calculate their employment equity score in terms of code 300.)

The goal is that an enterprise should spend 6% of the leviable amount as defined by the skills development levies act of 1999.

The goal is that a measured entity spend 2% of its Net Profit After Tax (NPAT) on enterprise development activities.

These are contributions aimed at creating sustainable access to the economy for historically disadvantaged South Africans.

The goal is that a measured entity spend 1% of its Net Profit After Tax (NPAT) on enterprise development activities.

For a QSE, complying with BEE can create substantial competitive advantage and thus have a very positive effect on the business.

In addition, it is relatively easy for QSEs to achieve a good BEE score, irrespective of the percentage of black ownership, because they need to measure only their four best elements.