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SMES and black economic empowerment in South Africa

Author

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  • Nina Kupzig

    (Ruhr-Universität Bochum)

Abstract

Black Economic Empowerment (BEE) is a South African policy that aims to decrease racial inequality and incentivises firms to train, hire, promote and transfer ownership to black people. However, the policy struggles to reach its goals. This article investigates the firm-level determinants of BEE compliance of small and medium-sized enterprises (SMEs) to understand the challenges towards BEE adoption for SMEs. Considering the BEE certification decision and the BEE compliance level, the results show that, e.g., firm location, age, industry, owner and manager characteristics, and firm size are significantly associated with BEE compliance.

Suggested Citation

  • Nina Kupzig, 2025. "SMES and black economic empowerment in South Africa," Economics Bulletin, AccessEcon, vol. 45(3), pages 1159-1169.
    • Handle: RePEc:ebl:ecbull:eb-25-00504
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    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I3-P102.pdf
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    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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