top of page

THE

BEECHAMBER

Asset 4.png

NEWS

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

Writer's picture: Newsletter EditorNewsletter Editor
A Start-up business qualifies as an Enterprise Development Beneficiary under the Amended General B-BBEE Codes of Good Practice, as it meets the definition of an 'Entity.' However, the Measured Entity must ensure that the objectives of the development agreement are clear and measurable. Enterprise & Supplier Development Services are available to assist members in understanding the requirements for supporting these beneficiaries.

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.

bottom of page