Responses of selected enterprises to amended broad-based black economic empowerment legislation

Abstract

Broad-Based Black Economic Empowerment (B-BBEE) has been the epitome of policy reform pervading South Africa (SA) since 1994, the end of apartheid. Often making media headlines, it inherently arrogates itself to all stakeholders engaged in commerce with/within SA. This article highlights the results of a qualitative study conducted to investigate recent (2013) changes to the B-BBEE legislative landscape in Cape Town (South Africa), with the focus being on one market segment: Qualifying Small Enterprises (QSEs). These enterprises operate within the same realm as Small Medium and Micro Enterprises (SMMEs). The rationale for such a focus stemmed from QSEs/SMMEs seemingly rigid response to B-BBEE legislative change.The study’s findings were in line with the researcher’s precedential assumption upon its initiation: legislative change to Broad-Based Black Economic Empowerment (B-BBEE) for Qualifying Small Enterprises (QSEs) led to non-compliance and impeded transformation goals. The results give rise to a plethora of valuable insights into the dynamics of the industry, not only for strategic direction to be set for/by stakeholders on both a micro and macro level, but also providing a solid foundation relative to further research to be embarked upon – a notion highly advocated in supporting the integration of sustainable transformation in modern South Africa (SA).

Keywords

• Broad-Based Black Economic Empowerment
• Cape Town
• legislative change
• non-compliance
• Qualifying Small Enterprises
• South Africa