Q | ABC Traders 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, ABC Traders 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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