Responses of selected enterprises to the amended broad-based black economic empowerment legislation in Cape Town, South Africa

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. The impetus for the study ensued owing to recent (2013) changes to the B-BBEE legislative landscape. More specifically, the focus of the study was on one segment: Qualifying Small Enterprises (QSEs), operating within the same realm as Small Medium and Micro Enterprises (SMMEs). The rationale for such a focus stemmed from this market segment’s seemingly rigid response to such change, deemed to support this study’s results. The literature review embarked upon in Chapters 2 to 4, that is, collecting secondary data, provided for a solid foundation relative to a subject matter embedded with technical jargon and often driven by highly emotive/subjective inputs from stakeholders. The literature primarily drew from untested assumptions: these were mainly due to the high degree of contentiousness surrounding B-BBEE as subject matter, the lack of research (statistical results) relative to B-BBEE legislative change and more specifically, the lack of the latter relative to this study’s scope. The above introduction initiates the notion of there being inherent demarcations to this study, dictating the most relevant research design and methodology suited thereto. A pragmatic research philosophy was adopted, owing to its qualitative, exploratory enquiry. Furthermore, the unit of analysis, consisting of 16 samples, was conveniently selected. Although convenience sampling was regarded the most suitable approach to collecting data, it gave rise to the study’s biggest limitation: its inability to generalise findings. On that note, its 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) lead(s) 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).