Broad-Based Black Economic Empowerment (BBBEE) is one of the most controversial issues in South African business. This dissertation examines the trajectory of the evolution of the BBBEE program from the apartheid era. The main purpose of BBBEE was to correct and remedy the injustices of the apartheid era.
By introducing the law, the government wanted to integrate the historically disadvantaged South African population into the mainstream economy. Therefore, the government needs to rethink its transformation agenda and adopt a broad BBBEE policy. It explains the rationale for the dissertation and reflects on the research questions addressed in this dissertation.
This chapter informs the reader about the topic of the thesis and the direction the thesis is taking. This chapter contains a brief overview of the Employment Equity Act 55 of 1998, the Skills Development Act 97 of 1998, and the seven pillars of Broad-based Black Economic Empowerment.
- Research objective
- Rationale
- Research questions
- Research methodology
- Literature review
- Conclusion
The Broad-Based Black Economic Empowerment Act5 is controversial because it assumes that years of racism have contributed to a weak economy. The Amendment Act addresses fronting, the status of sectoral codes, introduces generic Black Economic Empowerment Codes and creates a Black Economic Empowerment Commission.6 It serves as a guideline for the development of codes of good practice that enforce various aspects and requirements of the Code. Therefore, this study will examine the impact of the BBBEE policy in South Africa in relation to the specific provisions of the BBBEE Act and analyze its effects on the beneficiaries.
Legislation such as the 1996 Constitution, the Broad-Based Black Economic Empowerment Act 53 of 2003 and the Broad-Based Black Economic Empowerment Amendment Act 46 of 2013 will form the basis for the research. This article seeks to analyze the future of BBBEE in South Africa together with the effect of the BBBEE policy on the South African economy by researching small and medium-sized enterprises. The article provides an introduction to the history of South Africa and illustrates the reason for the adoption of the BBBEE policy.
Despite considering the different stages of BEE, the work does not describe the impact of BEE on the economy and the future of BBBEE in the South African economy. It deals with the contention that local government in the South African government is focused on the abuse and manipulation of public procurement systems by officials.
- Apartheid pre-1994
- South Africa’s independence- post-1994
- The meaning of Black Economic Empowerment in the context of South
- Black Economic Empowerment
- Broad-Based Black Economic Empowerment
- The Seven Pillars of BBBEE
- Conclusion
- Overview
- Small and Medium-Sized Enterprises
- The impact and effect of BBBEE on enterprises
- The impact of BBBEE on SMEs
- The effect of BBBEE on female operated businesses
- The challenges faced by BEE SMEs
- Conclusion
14IP Govender 'A Critical Appraisal of the misapplications of Black Economic Empowerment and the common misconceptions that surround it' (LLM, University of KwaZulu-Natal, 2015). However, due to uncertainty about the feasibility of the policy, it was replaced by the New Growth Path (NGP). It falls within the context of the country's national transformation programme, namely the RDP (Reconstruction and Development Programme).
48 HM Knoetze An analysis of codes of good practice issued in terms of the Broad-based Black Economic Empowerment Act 53 of 2003 (LLM thesis, University of the Free State, 2006). 52 P Govender A Critical Assessment of the Misuse of Black Economic Empowerment and the Common Misconceptions Surrounding It (Law Dissertation, Faculty of Law and Management, UKZN, 2015) above (note 14). The BEE Commission Report (above) and the 'BEE Strategy Paper culminated in the promulgation of the BBBEE Act in 2003'.56.
The power of the Minister of Trade and Industry to issue codes of good practice and publish transformation charters; And. The Minister of Trade and Industry is empowered under Article 9 of the Act59 to issue codes of good practice. Employment equity and management control overlap to some extent and the main focus is on matching the demographic characteristics of the company with the demographic characteristics of the country.
61 DN Ndou Implementation Analysis of Black Economic Empowerment: The Case of TranUnion ITC. The BBBEE Act targets businesses to be a driving force in addressing past inequalities and seeks to compel businesses to establish BBBEE strategies. If a company falls within the scope of the Act and does not promptly meet the prescribed Black Economic Empowerment Indicator, it will receive a poor BBBEE rating, which will adversely affect its ability to do business in South Africa.
SMEs play a vital role in the development of the economy, as they create more jobs than large businesses; therefore, they are considered the driving force of economic growth. Corruption in tendering is a major obstacle to BEE policy, therefore it results in most South Africans being left out of the mainstream economy. 85 B N O Irene “The Macroeconomic Landscape of Post-Apartheid South Africa: A Critical Review, of the Effect of Broad-Based Black Economic Empowerment (BBBEE).
Program for the Success of Female Operators of SMEs. 25 women, previously abused and neglected, with opportunities to grow and participate in the growth of the economy. In South Africa 'the lack of education and training has reduced the managerial capacity in firms'88 and this is the cause of the low level of entrepreneurial creation and the high failure rate of new SMEs.
The advantages and disadvantages of BBBEE
- The advantages of BBBEE
- The disadvantages of BBBEE
- Conclusion
Broad-Based Black Economic Empowerment Amendment Act 46 of 2013 Constitution of the Republic of South Africa 1996. Irene, BNO 'South Africa's Post-Apartheid Macroeconomic Landscape: A Critical Review of the Effect of Broad-Based Economic Empowerment of Black BBBEE) Program for the Success of Female SME Operators Journal of Educational and Social Research 145-150. Acemogluy, D Gelb, S & Robinson, JA 'Black Economic Empowerment and Economic Performance in South Africa' (2007) available at https://www.treasury.gov.za, accessed 15 August 2019.
Government of South Africa 'GEAR: A macroeconomic strategy', 1996:1 available at https://www.treasury.gov.za accessed 21 August 2019. Padayachee A & Desai, A 'Post-Apartheid South Africa and the Crisis of Expectations ' available at https://www.rozenbergquarterly.co.za accessed 20 August 2019. Strydom P D F 'Black Economic Empowerment in South Africa' 2006 available at https://www.sabusinesshub.co.za accessed 31 August 2019.
South Africa's Key Economic Policy Changes' available at https://www.sahistory.org.za, accessed 22 August 2019. Unemployment in South Africa is worse now than at the end of apartheid, available at https:// www.businesstech.co .za accessed 21 August 2020. Tell me something good: The impact of BBBEE on Corporate Governance in South Africa', available at https://www.blackdiamondsmag.co.za accessed 15 September 2019.
What are the disadvantages of Black Economic Empowerment' available at https://www.reference.com accessed 10 October 2019. Van Steiger A, 'Why does South Africa need BEE' 2018 available at https://www.nortonrosefulbright.com accessed 28 August 2019. Govender, P A Critical Appraisal of the misapplications of Black Economic Empowerment and the common misconceptions surrounding it (LLM thesis, University of KwaZulu-Natal, 2015).
Moyo, SY The Impact of Broad-Based Black Economic Empowerment (BBBEE) on Small Enterprises (Master of Business Administration, North West University, 2009). Ndou, DN Implementation analysis of Black Economic Empowerment: the case of TranUnion ITC (Master of Business Administration, University of KwaZulu-Natal, 2006). Van der Nest, D The Impact of Black Economic Empowerment on Small Business Management in South Africa (Magister Commercii, Rand African University, 2004).
