Willingness of entrepreneurs to use Broad-Based Black Economic Empowerment to build cross-race business alliances

Abstract

Background: Broad Based Black Economic Empowerment is based on predetermined outcomes which are not just determined in legislation, but the Codes of Good Practice as enacted by the BBBEE Commission. This research focuses on the evolutionary approach of Broad Based Black Economic Empowerment within the cross-race (‘black’ and white) economic cooperation and business alliance within the South African SMME ecosystem; within the legislated rationality of the socio-economic system which is the South African economy.

Aim: Broad Based Black Economic Empowerment is based upon demographics: race, gender and age. The research sample which consists of 347 respondents is used to consider the impact of BBBEE on the entrepreneurial spirit and economic participation: contributing to cooperation within the SMME ecosystem in South Africa. The aim is to understand what drives cross-race business alliances through BBBEE.

Setting: This research focuses on the evolutionary approach of Broad Based Black Economic Empowerment within the cross-race (‘black’ and white) economic cooperation and business alliance within the South African SMME ecosystem; within the legislated rationality of the socio-economic system which is the South African economy.

Methods: One of the central themes, concept and construct of this research is race; conventional academia and theories exclude race, age, and gender. This study makes use of demographic, univariate and multivariate statistical analysis to prove the different stated hypotheses.

Results: Broad Based Black Economic Empowerment is known across races, genders and age. Willingness, economic prosperity and benefits are driven by compliance with legislation. The said compliance is not driven by voluntary participation, which is a conundrum to be overcome by both legislators and entrepreneurs within the SMME ecosystem within South Africa.

Conclusion: The logical process for entrepreneurship and further developed is a process rooted within capitalistic norms (Capitalism), whereas BBBEE is contradictory to these norms.