An EME (exempt micro enterprise) is an entity that is exempt from producing a BEE scorecard.
In terms of the 2007 Codes of Good Practice:
An EME is defined as any entity whose annual revenue is less than R5m, depending on sector. There are 9 gazetted sector codes, some of which have a different EME threshold, e.g tourism is R2.5m
In terms of the 2013 Amended Codes:
An EME is defined as any entity whose annual revenue is less than R10m, depending on sector.
The Amended Codes state that right now an entity can choose which set of codes to follow, but as from 1st May 2015, it must be the Amended Codes.
If an entity falls into a specifc sector it must follow the relevant sector code.
It is obvious that a business has an annual revenue of less than R10m, and it does not fall into any sector that has a gazetted sector code, the entity would want to follow the Amended Codes, particularly if its revenue is more than R5m but less than R10m.