SMES and black economic empowerment in South Africa

Nina Kupzig ()
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Nina Kupzig: Ruhr-Universität Bochum

Economics Bulletin, 2025, vol. 45, issue 3, 1159 - 1169

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.

Keywords: BEE; Small and Medium-sized Enterprises; Implementation (search for similar items in EconPapers)
JEL-codes: L1 L2 (search for similar items in EconPapers)
Date: 2025-09-30
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