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Broad Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Black Economic Empowerment

Code Series 800 : Codes of Good Practice for Qualifying Small Enterprises (QSE’s)

7. Statement 806 : Enterprise Development for QSE's

7.1 The QSE Enterprise Development (ED) scorecard


7.1.1) In calculating the compliance of a Measured Entity the following Net Profit After Tax (NPAT) target applies unless: the company does not make a profit last year or on average over the last five years. the net profit margin is less than a quarter of the norm in the industry.


7.1.2) If the Turnover is to be used, the target will beset at:
2% x Indicative Profit Margin (NPAT/Turnover) x Turnover.
Indicative profit margin is the profit margin in the last year where the company's profit margin is at least one quarter of the industry norm.


7.1.3) The following table represents the criteria and method used for deriving a score for approved projects and enterprise development under this statement:



Weighting Points

Compliance Target

Average annual value of all Qualifying Contributions made by the Measured Entity as a percentage of the target


2% of NPAT