Abstract
Orientation: The current Broad-Based Black Economic Empowerment (BBBEE) legislation imposes direct obstacles on small and medium enterprises (SMEs) in South Africa (SA). Thus, the perceptions of SMEs on the future of BBBEE elucidate the effect of the legislation on the economy and its operating industries. Research purpose: The study had an objective of comprehending the future of BBBEE and its effect on the SA economy and operating industries through the perceptions of SMEs. Motivation for the study: The study’s objective provided new insights and a profound understanding of BBBEE and its influence on the economy and operating industries. Research design, approach and method: The research followed a qualitative discipline with the use of a semi-structured interview to collect the empirical data. The study consisted of 22 participants, with one participant being excluded because of omissions identified. Main findings: The findings exemplified that BBBEE was promoting tender corruption and economic strain. Thus, the participants emphasised a restructured BBBEE model for the future. Practical and managerial implications: The findings invite policymakers to restructure the current BBBEE legislation so that it could promote equality. Furthermore, SMEs could relate to the industry effects and implement strategies to manage such effects on their businesses. Contribution or value-add: The findings contribute towards new research insights that determine the future of BBBEE.
Highlights
Broad-Based Black Economic Empowerment (BBBEE) has become an emerging obstacle for small and medium enterprises (SMEs) in South Africa (SA), but it is currently one of the leading issues on the SA government’s agenda (Kruger 2011)
The findings of this study identified that the BBBEE legislation was, causing economic strain and not overcoming the social injustices of the past
The findings provided an innovative methodology for analysing the future of BBBEE through the lens of SMEs
Summary
Broad-Based Black Economic Empowerment (BBBEE) has become an emerging obstacle for small and medium enterprises (SMEs) in South Africa (SA), but it is currently one of the leading issues on the SA government’s agenda (Kruger 2011). The core issue surrounding BBBEE SMEs is being BBBEE compliant (Chingwaru 2014) Measures such as BBBEE are directed at overcoming the legacy of apartheid (Chingwaru 2014; Kruger 2011). The objectives of the BBBEE strategy include increasing the number of black people in executive and senior positions as well as ensuring increased income levels of black individuals within qualifying BBBEE companies (DTI 2016a; Republic of South Africa 2014). Organisations that execute BBBEE compliance practices are required to obtain a BBBEE certificate that provides proof of their BBBEE compliance to apply for tender opportunities in the public sector of the SA economy
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
