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Broad-Based Black Economic Empowerment Policy Andâ Entrepreneurship In South Africa

Author

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  • CHIGOZIE ANDY NGWABA

    (Bradley University, Peoria, IL, USA)

Abstract

This article examines the effects of the Broad-based Black Economic Empowerment (BBBEE) policy on black entrepreneurship in South Africa. The BBBEE policy is a legal framework aimed at addressing historical inequalities by promoting equal opportunities and encouraging the participation of black individuals in the economy. The policy highlights include increased access to funding for previously marginalized groups to start and grow their businesses, improved market access to encourage large businesses to partner with small businesses owned by previously marginalized groups, and increased skills and development. Using the policy as a quasi-natural experiment, the study adopts a difference-in-difference estimation technique contrasting periods before and after implementation and measuring its effectiveness on black entrepreneurial entry. Results from the analysis indicate that the policy was ineffective in improving black entrepreneurship in South Africa.

Suggested Citation

  • Chigozie Andy Ngwaba, 2023. "Broad-Based Black Economic Empowerment Policy Andâ Entrepreneurship In South Africa," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 28(04), pages 1-14, December.
    • Handle: RePEc:wsi:jdexxx:v:28:y:2023:i:04:n:s1084946723500279
    DOI: 10.1142/S1084946723500279
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