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Legal & Compliance

B-BBEE Explained: What Small Businesses Need to Know

Broad-Based Black Economic Empowerment affects your ability to win government contracts and corporate clients. Here is what B-BBEE means for your small business.

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Xage Business Team

Xage Editorial Team

๐Ÿ“… 10 March 2026 ยท โฑ 1 min read ยท ๐Ÿ‘ 2 views
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What is B-BBEE?

Broad-Based Black Economic Empowerment (B-BBEE) is a South African government policy to increase economic participation of Black South Africans in the economy. Your B-BBEE level affects your ability to sell to government and large corporates.

Exempted Micro Enterprises (EMEs)

If your annual turnover is under R10 million, you are automatically Level 4 (or higher if over 51% Black-owned). No scorecard needed - just get an EME certificate from any SARS accredited verification agency. Cost is usually R500-R1,500.

The B-BBEE Scorecard Elements

  1. Ownership (25 points) - percentage of Black ownership
  2. Management Control (15 points) - Black people in senior management
  3. Skills Development (20 points) - Training spend on Black employees
  4. Enterprise and Supplier Development (40 points) - Supporting Black-owned businesses
  5. Socio-Economic Development (5 points) - CSI contributions

Need help with your business?

Xage offers free tools and templates for South African businesses.

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