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Measuring perceived black economic empowerment in the South African wine industry

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  • Janssens, W.
  • Sefoko, N.
  • van Rooyen, Johan
  • Bostyn, F.
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    Abstract

    The aim of this study is to develop a scale to measure perceived black economic empowerment (BEE) as reported by beneficiaries themselves. Two scale development procedures were carried out on randomly selected samples of 213 and 322 previously disadvantaged individual respondents within 14 and 11wine business that cover the larger part of the wine industry chain. The results led to a 'feeling' self-report scale (5-dimensions) and an ‘evolution’ self-report scale (6-dimensions). The emerged dimensions are: Business ownership and control (BOC), Access to finance (ATF), Employment and Human Resources Management (EMP) [internal and external], Social capital/enabling environment (SOC) and Lobbying power and collective action (LOB). First measurement results indicate that respondents feel less empowered with respect to BOC and ATF as compared to EMP, SOC and LOB. There appears to be no gender or age differences, but there are geographical differences. The latter is mostly per farm, that is, a lot of variation in BEE is observed at the firm level. The scale can be used at the firm and industry level as a diagnostic tool to monitor BEE progress as a complementary and not a substitutive framework to the wine industry scorecard as an objective measure of BEE. Future research should focus on the gap between the two definitions and assessment tools in order to comprehensively capture BEE in its entirety. The scale can also be adapted to fit the context, for example, its use in the agricultural sector at large.

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    Bibliographic Info

    Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

    Volume (Year): 45 (2006)
    Issue (Month): 4 (December)
    Pages:

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    Handle: RePEc:ags:agreko:10137

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    Web page: http://www.aeasa.org.za/
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    Keywords: Agribusiness;

    References

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    1. van Praag, Bernard M. S., 1991. "Ordinal and cardinal utility : An integration of the two dimensions of the welfare concept," Journal of Econometrics, Elsevier, vol. 50(1-2), pages 69-89, October.
    2. Ravallion, Martin & Lokshin, Michael, 2001. "Identifying Welfare Effects from Subjective Questions," Economica, London School of Economics and Political Science, vol. 68(271), pages 335-57, August.
    3. West, Quentin M., 1973. "Economic Research Trade-Offs Between Efficiency And Equity," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 5(01), July.
    4. Kapteyn, A.J., 1994. "The measurement of household cost functions: Revealed preference versus subjective measures," Discussion Paper 1994-3, Tilburg University, Center for Economic Research.
    5. Menno Pradhan & Martin Ravallion, 2000. "Measuring Poverty Using Qualitative Perceptions Of Consumption Adequacy," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 462-471, August.
    6. Kapteyn, A.J., 1994. "The measurement of household cost functions: Revealed preference versus subjective measures," Open Access publications from Tilburg University urn:nbn:nl:ui:12-364386, Tilburg University.
    7. Wils, F.C.M., 2001. "Empowerment and its evaluation: a framework for analysis and application," ISS Working Papers - General Series 340, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    8. Hildebrandt, Lutz, 1987. "Consumer retail satisfaction in rural areas: A reanalysis of survey data," Journal of Economic Psychology, Elsevier, vol. 8(1), pages 19-42, March.
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