The effects of altering B-BBEE on small enterprises within South Africa
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Date
2019
Authors
Baggaley, Kerri-Ann
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Abstract
The South African Government has been working to right the injustices of the
past through incorporating various policies into the business environment, one
such policy is that of Black Economic Empowerment (BEE), which is meant to
aid previously disadvantaged individuals. There are regularly conflicting
messages relating to the policy as to whether or not it is being effective and
accomplishing what it was designed for, or if instead it should be removed
completely from the legislative system. This study looked at various aspects of
the policy, including findings from previous studies, people’s options and their
willingness to comply, as well if the policy has assisted or halted organisational
growth, business opportunities or personal growth and the associated costs. An
online survey was conducted, in order to gather information which was missing
from the literature, however only respondents who indicated that they were part
of a Qualifying Small Enterprise or Exempt Micro Enterprise were used in the
results, all other data was excluded. Surprisingly although majority of the
respondents indicated that they were non-compliant and unwilling to comply or
only did the minimal required to obtain a level 4 status, also agreed that the
policy overall assists with SME growth. Many were also of the opinion that the
policy had not assisted their organisation whether it be regarding growth or
access to business opportunities. The study also expressed a level of
misunderstanding by participants regarding the policy, its actual requirements
and the funds needed to fully comply. It is clear that the policy is not being
effective and still continues to have resistance from many organisations, and
should be reanalysed and potentially readjusted to better suit the business
environment, whereby people are more willing to integrate its components into
their organisations and assist with the government’s aim of bettering the lives of
those previously disadvantaged individuals
Description
MBA
Keywords
South Africa; BEE; SMEs; Management; Organisational Growth