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THE

BEECHAMBER

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NEWS

DOES A START-UP ENTERPRISE QUALIFY AS AN ENTERPRISE DEVELOPMENT BENEFICIARY?


Q | A Measured Entity enters into an Enterprise Development Beneficiary contract that involves a Start-up Enterprise. Schedule 1 of the Amended General B-BBEE Codes of Good Practice defines a Start-up Enterprise as “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 is merely a continuation of a pre-existing enterprise”.

 

Does a Start-up business qualify as an Enterprise Development Beneficiary? 

 

A | An Enterprise Development Beneficiary must meet the definition of ‘Entity’ as it appears in Schedule 1 of the Codes of Good Practice which: “means a legal entity or a natural or a juristic person conducting a business, trade or profession in the Republic of South Africa”.

 

Therefore, the Measured Entity can claim a Start-up Enterprise as an Enterprise Development Beneficiary, providing the objectives are clear and measurable when entering into an agreement.

 

Enterprise & Supplier Development Services are available for Members to understand Beneficiary requirements.

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