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).
Highlights
After 1994, the African National Congress (ANC)-led government introduced Broad-Based Black Economic Empowerment (B-BBEE) as a means to redress the inefficiencies effected by South Africa’s (SA) infamous non-democratic past
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)
This article presents the results of the research con- tion and chose not to have their B-BBEE certificate ducted within the realm of its aims
Summary
After 1994, the African National Congress (ANC)-led government introduced B-BBEE as a means to redress the inefficiencies effected by South Africa’s (SA) infamous non-democratic past. 2013 marked an era of change in the B-BBEE sphere, when the B-BBEE Act was amended and soon thereafter, the Codes refined. Upon the release of the amended Codes, Dr Rob Davies, the Minister of the Department of Trade and Industry (DTI), announced that the legislative change symbolized a new beginning by focusing on productive B-BBEE and the growth of black entrepreneurs (Department of Trade and Industry, n.d.a). The Department of Trade and Industry (DTI) is responsible for the B-BBEE policy development, reform and implementation. This article sets forth how such recent B-BBEE legislative change manifests itself in the market, in one of the three market segments, the classification of which is based on annual turnover, namely, Qualifying Small Enterprises (QSEs)
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