Equal participation in the economy, especially for the previously disadvantaged, was one of the stated goals of black economic empowerment. There are perceptions and arguments to be made on both sides of the divide, proponents and exponents of BEE about business transformation in the city of eThekwini.
Background
This study examines business transformation in the city of Durban and the debates surrounding it through the lens of the previously disadvantaged majority, black1 South African entrepreneurs in the context of BEE. The study explores the topic of business transformation in Durban from the perspective of black entrepreneurs and their perception of the opportunities arising from transformation and government implementation of broad-based BEE initiatives.
Aims and objectives
While much has been written about these policies, the particular focus of this study is to explore the perceptions and experiences of black entrepreneurs regarding business transformation in Durban in the context of black economic empowerment. One of the expected outcomes of this research is the perception of the opportunities and obstacles arising from business transformation by those in the designated beneficiary groups.
Theoretical framework
The first is the structural freedom as embodied in the act, and the second is the categorical (daily) experience of the subjects of freedom. Puwar discusses how fears arise as a result of this invasion of the 'safe and normative spaces'.
Organisation of the dissertation
This chapter shows that economic discrimination based on race and the search for redress is not unique to South Africa, but has been experienced in other countries around the world. The case of the United States is different from that of South Africa in that its affirmative action programs are aimed at the minority part of the population, whereas the South African one is aimed at the majority of the population.
The United States of America (US)
Legacy of Slavery and Jim Crow
Despite their lives being restricted by discriminatory laws, liberated African Americans, especially in the North, actively participated in the life of American society. They were able to enlist in the military, some owned land, businesses, homes, property, and very few slaves and slaveholding plantations (African American Odyssey, n.d.).
Affirmative action (Government Set-Asides)
Some opponents of affirmative action programs, such as selection for minority-owned businesses, have argued the constitutionality of such programs, citing: "the apparent conflict between two equal protection goals is the removal of any remaining barriers to full racial equality and the requirement for state treatment of individuals on the basis of their personal merit rather than their race” (Rice. Gross Revenues Employees Number of Firms Population African-American firms outpace the growth of non-minority-owned firms.
Malaysia
Racial economic inequalities
During the British colonization of Malaysia, ethnic groups were kept apart through spatial segregation and economic specialization which would result in Malays remaining in low traditional sectors of the economy while the Chinese and Indians were in profitable sectors of the economy (Eyre, 1997; Emsley , 1996 ). In 1970, the Malay ethnic group that made up 60% of the national population had only a 2% ownership of the country's corporate wealth (Darity, 2005: 5).
New Economic Plan (NEP)
In 1970, economic and business imbalances along racial lines were so evident that Chinese alone owned “85% of all retail businesses, and Chinese and Indians owned 80% of manufacturing businesses…” (Farron, 2002: 5). These economic imbalances along racial lines, which led to the 1969 race riots, forced the government to devise remedial measures to address them.
Public procurement
In order to create, grow and improve the Bumiputera's business ownership share, the government, through the Ministry of Finance, required companies wishing to receive preferential treatment in the award of contracts and tenders to have a majority stake in Bumiputera, to have executive and held leadership and financial positions. management” (Lee. It (NEP) has “successfully improved the socio-economic positions of the long neglected and economically backward Bumiputera groups” (The FW de Klerk Foundation, 2004: 3).
South Africa
- Black Economic Dispossession
- Transformation
- Black Economic Empowerment (BEE)
- Criticism of Black Economic Empowerment (BEE)
- Conclusion
The purpose of the BEE policies, according to the RDP, is to make it easier for blacks. They acknowledge and admit that this has not led to economic empowerment of the majority of poor blacks, but the politically connected few.
Introduction
The study design
Study area and study participants
Participants’ particulars
Since Black entrepreneurs were difficult to find for the study, snowball sampling was helpful because the first few participants found through a friend provided the contact information of their fellow Black entrepreneurs.
Data collection instruments
Data analysis
Ethical considerations
Ethical issues covered in the informed consent form were also discussed verbally with the participants for clarity purposes. Participants were assured of anonymity in the final written work to be referred to simply as respondents rather than their names.
Limitations of the study
This chapter presented the study methodology, which is a qualitative study design using an in-depth interview guide, the study area, the participants, and the snowball sampling method that was used in the study. This chapter also presents the limitations of the study, mainly that it focused only on blacks and was not broad enough in terms of gender to include more women even in the black demographic.
Introduction
Perceived opportunities
Entry into business
So if you are a lawyer, most of the time you are in business; people do not discover it; then practice business in what they teach you in school. One of the participants started a business because of the lack of well-paid jobs in Durban compared to other places like Johannesburg.
Business type
The ninth type of business in which one of the participants in the study was involved was the graphic design and printing business. The 13th respondent was also involved in the clothing business apart from the printing and embroidery business.
Perceptions of black economic empowerment (BEE)
Necessary/helpful
He said: “I would say it has worked in terms of access to opportunities.” The 13th respondent also believed that BEE has been successful. He states that: “This thing, BEE, I can say it has been successful...” On the success of BEE's opportunity facilitation, he said: “It has been successful because all the boys, especially many of our colleagues and opponents, have a job to get. via BE.” As far as he is concerned, regardless of the fact that he himself has not benefited from it, it has been successful because others have benefited from it.
Not necessary/harmful
So the people who were getting the money, the people who were getting the work were the black people, but the people who were doing the work were the white people and they were getting a lot of money because the work was making a lot of profit… it didn't work out. Most of the roads, if I give an example, most of the roads...because of the EEC status, are there but not finished.
Not adequate or working
The 7th respondent, like many others, is of the opinion that BEE policy does not go far enough. The 9th respondent is also one of the entrepreneurs who hold the opinion that BEE policy lacks monitoring and correct implementation.
Perceived barriers to enterprise development
The 4th respondent views an environment that does not allow black-owned SMEs to grow as a barrier to business transformation. Such opportunities have not been offered to SMEs owned by black South Africans.
Perceived business transformation
There is transformation
It's visible in people driving, we're moving to better suburbs, black kids are now going to better schools that used to be high and we never thought we could afford them. Economically there has been change but it is not much so many people are left behind due to foolish mistakes and greed of others but there are visible changes.
There is a lack of transformation
This is about the city of Durban and we say it is the best governed city and everything else, but we have changed the demography of poverty, economic opportunity and everything else. According to him, “…it is on the periphery” and it manifests itself in the jobs that black entrepreneurs get, such as cleaning, gardening, printing T-shirts, buying office supplies, and so on (respondent 7).
Perceived opportunities for black entrepreneurship
Entry into business
What opportunities do black entrepreneurs in Durban see in relation to their own opportunities to start and develop businesses and more generally for black people. What obstacles or barriers do black entrepreneurs in Durban perceive in terms of initiating and developing their businesses.
Types of businesses
Indeed, as stated in the National Skills Development Strategy III (DHET's Skill Development from Education and Training should not only lead to employment but also empower people to create opportunities for themselves and that lack of training and education is the most important limiting factor against creating opportunities.
Perceived barriers by black entrepreneurs in developing their enterprises
Domination of the market by big business
One of the barriers perceived by the participants is the impenetrability of the market, both private and public. One option is non-renewal: network membership is constant; the business community is a closed group.” One explanation for the challenges to business transformation as experienced by study participants in the area when it came to doing business with large established white-owned businesses is the closed nature of the business community.
Denial of big contracts
Black-owned small businesses find it nearly impossible to penetrate the large corporate-dominated market. One of the consistent grievances cited by participants has been the government's continued relationship with big business, resulting in the sidelining of black-owned small and medium-sized business in terms of the awarding of meaningful and large-scale projects.
Perceived role of BEE
Necessary/helpful
It is no secret that the apartheid government and big business network relationship has continued, only this time as a post-apartheid government and big business network with little, if any, changes. Therefore, it would not be unreasonable to conclude, as already noted by Fefchamps, that “membership in the network is constant; the business community is a closed group.” Whether big business for big business or government for big business networks, they remain much the same with peripheral or superficial changes to accommodate or be seen to conform to changing circumstances.
Not necessary/harmful
The current ANC Secretary General Gwede Mantashe (Nhlabathi, 2012) was reported to have echoed this view that BEE has failed to transform the economy as evidenced by the "walls of poverty, inequality and unemployment..." The CEO of the Black Business Forum also echoed Gwede's observations Mantashe stating that it is toothless and focused on compliance rather than actually driving economic transformation (Nhlabathi, 2012). The researcher's analysis of the views of the respondents who say that BEE is not necessary is that it is not achieving what was intended.
Not adequate/working (Many jobs still go to white and Indian businesses)
As a result, black-owned small and medium-sized enterprises that have the right set of skills, expertise, professionalism and motivation end up not receiving the government support they need to grow into large and self-sustaining enterprises in the process. And those enterprises that do not need government support in the form of large businesses that are already established, and those.
Perceived business transformation
There is transformation
Respondents recognized the progress made in business transformation by comparing what was available under apartheid with what is available now, in the post-apartheid era. One respondent pointed to the fact that blacks today have established businesses in the CBD, something that would have been just a dream in the apartheid era (respondent 2).
There is lack of transformation
As the second respondent put it from an economic perspective, the transformation that has taken place is not real and deep, but peripheral. The fact that poverty and lack of opportunity is still a black problem, while wealth, privilege and opportunity are still in the hands of whites and Indians increasingly (Respondent 8), creates a perception that the transformation that has taken place , is just on the surface.
Conclusion
Apartheid and Business: Competition, Monopoly and the Growth of the Malt Beer Industry in South Africa. Retrieved from http://www.mg.co.za/article zuma-says-bee-not-broadbased-enough Maylam, P.
INFORMED CONSENT FORM
In-depth Interview Guide
Speaking about your direct experience or business in general, do you think race is still a factor in business? Do you think race still poses particular disadvantages (e.g. difficulties in reaching certain markets/retail sites).
