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

Sector Codes

Defence Sector Code

13. Start-up Enterprises


13.1 A Start-up Enterprise must be measured as an EME under this statement for the first year following its formation or incorporation. This provision applies regardless of the expected annual total revenue of the Start-up enterprise.


13.2 A Start-up Enterprise is deemed to have the qualifying B-BBEE status in accordance with the principles of paragraph 11 of this Sector Code.


13.3 In order to qualify as a Start-up Enterprise, the enterprise must provide an independent confirmation of its status.


13.4 Despite paragraphs 13.1 and 13.2, a Start-Up Enterprise must submit a QSE scorecard when tendering for any contract or seeking any other economic activity covered by Section 10 of the Act, with a value higher than R5,000,000 (five million Rand) but less than R50,000,000 (fifty million Rand). For contracts or any other economic activity referred to in this paragraph 13.4, of R50, 000,000 (fifty million Rand) or more, they should submit a Defence Sector Scorecard. The preparation of such scorecards must use annualized data.