WORKING WITH QUALIFYING SMALL ENTERPRISES

Qualifying Small Enterprises (QSE’s) refer to companies with an annual turnover between R5 million and
R35 million.

  • A QSE is able to select which of the seven elements of the scorecard it wishes to be measured on, each carrying an equal weighting of 25%.
  • A QSE can score up to 100% by selecting four of the seven elements.
  • A QSE is required to spend 2% of net profit after tax (NPAT) on Enterprise Development to reach the 25 points, if it chooses to pursue this element of the scorecard.

The choices for the QSE are based on the following table:

Element Points
Ownership 25
Management Control 25
Employment Equity 25
Skills Development 25
Preferential Procurement 25
Enterprise Development 25
Socio-Economic Development 25
The QSE selects four of the seven elements on which to be rated, each carrying an equal value of 25 points