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WHAT IS THE DEFINITION OF A START-UP ENTERPRISE UNDER THE AMENDED CONSTRUCTION B-BBEE SECTOR CODES OF GOOD PRACTICE?

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Understanding the differences between the Amended General B-BBEE Codes of Good Practice and specific B-BBEE Sector Codes is essential for compliance and effective implementation. The definition of a Start-up Enterprise under the Amended Construction B-BBEE Sector Codes specifies that it refers to entities in operation for less than one year, including those that have recently resumed operations after being dormant.

At times, we may find that there are differences between concepts under the Amended General B-BBEE Codes of Good Practice as well as specific B-BBEE Sector Codes of Good Practice. This is evident when comparing the definition of a Start-up Enterprise under the Amended Construction B-BBEE Sector Codes Of Good Practice which states that a:

 

“Start-up Enterprise means a recently formed or incorporated Entity that has been in operation for less than 1 year. An entity that was formed and incorporated some time ago, but which has been dormant (non-operational), will qualify as a start-up enterprise for the first year after it commences operations. A start-up enterprise does not include any newly constituted enterprise which is merely a continuation of a pre-existing enterprise.”

 

It is important for Members to take note of the differences between B-BBEE Sector Codes of Good Practice to ensure that the correct implementation takes place.

 

Technical Compliance Services are available to guide members on requirements under B-BBEE Sector Codes of Good Practice.

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