The codes of good practice deal have identified three diferent size companies and treat each type separately:
Exempt Micro Enterprises (EMEs): These are companies that are very small – whose turnover is below the VAT threshhold. i.e their turnover does not exceed R5 million annum. They are probably one man businesses, and too small to have to comply with the BEE codes. An EME is automatically defined as being a Level 4 BEE contributor.
Qualifying Small Enterprises (QSEs); These companies are larger than the EME, but have a turnover not exceeding a pre-defined limit of no more than R35 million. QSEs follow the QSE scorecard. The QSE scorecard is generally easier to comply with than the generic scorecard. Its main differentiating feature is that the QSE may choose 4 of the 7 pillars of empowerment with which to comply
Generic enterprises: These businesses are larger than QSEs. They follow the GENERIC scorecard.