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SMES and black economic empowerment in South Africa

Author

Listed:
  • 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
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I3-P102.pdf
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    References listed on IDEAS

    as
    1. Qureshi, Salman Ali & Rehman, Kashif ur & Hunjra, Ahmed Imran, 2012. "Factors Affecting Investment Decision Making of Equity Fund Managers," MPRA Paper 60783, University Library of Munich, Germany.
    2. Busse, Matthias & Kupzig, Nina & Vogel, Tim, 2025. "The impact of black economic empowerment on the performance of listed firms in South Africa," Journal of Comparative Economics, Elsevier, vol. 53(2), pages 373-388.
    3. Omokolade Akinsomi & Katlego Kola & Thembelihle Ndlovu & Millicent Motloung, 2016. "The performance of the Broad Based Black Economic Empowerment compliant listed property firms in South Africa," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 34(1), pages 3-26, February.
    4. Omokolade Akinsomi & Katlego Kola & Thembelihle Ndlovu & Millicent Motloung, 2016. "The performance of the Broad Based Black Economic Empowerment compliant listed property firms in South Africa," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 34(1), pages 3-26, February.
    5. Sarah Bracking, 2019. "Black economic empowerment policy in Durban, eThekwini, South Africa: economic justice, economic fraud and ‘leaving money on the table’," Review of African Political Economy, Taylor & Francis Journals, vol. 46(161), pages 415-441, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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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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