What is a Start-Up?

As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice, a “Start-up Enterprise” means a recently formed or incorporated Entity that has been in operation for less than 1 year.? A start-up enterprise does not include any newly constituted enterprise which merely a continuation of a pre-existing enterprise.

?

Further rules applicable to Start- Up Enterprises include:

?

• Start-up Enterprises are deemed to have qualifying B-BBEE Status in accordance with the principles of paragraph 4 of Statement 000 of the Amended General B-BBEE Codes of Good Practice.
• A Start-up Enterprise may be measured in terms of the QSE scorecard, or the Generic scorecard should they choose to.
• A Start-up Enterprise must submit a QSE scorecard when tendering for any contract, or seeking any other economic activity covered by Section 10 of the Act, with a value higher than R10 million but less than R50 million. For contracts of R50 million or more they should submit the Generic scorecard. The preparation of such scorecards must use annualised data.

?

?

Our Technical Services are on hand to assist with the understanding the requirements of Start-Up Enterprises. ?

Join South Africa's largest community of B-BBEE Practitioners today to receive expert guidance and support.

?