Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Financial Services  Charter

Code Series FS000: Framework for Measuring Broad-Based Black Economic Empowerment

Statement 000: General Principles and the Scorecard

6. Start-up Enterprises
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6.1Start-up Enterprises must be measured as Exempted Micro-Enterprises under this statement for the first year following their formation or incorporation. This provision applies regardless of the expected total revenue of the Start-up Enterprise.

 

6.2Start-up Enterprises are deemed to have a B-BBEE Status of "Level Four Contributor" having a B-BBEE procurement recognition of 100% under this paragraph.

 

6.3In order to qualify as a Start-up Enterprise, the enterprise must provide an independent confirmation of its status. For avoidance of doubt, a new entity that is a merger of two or more existing enterprises may not qualify as a Start-up Enterprise.

 

6.4Despite paragraphs 6.1 and 6.2, Start-up Enterprises must submit a QSFI Scorecard when tendering for any contract, or seeking any other business covered by Section 10 of the Act, with a value higher than R5 million but less than R35 million. For contracts above R35 million they should submit the scorecard. The preparation of such scorecards must use annualised data.