Analysing the future of Broad-Based Black Economic Empowerment through the lens of small and medium enterprises

Orientation: The current Broad-Based Black Economic Empowerment (BBBEE) legislation imposes direct obstacles on small and medium enterprises (SMEs) in South Africa (SA). Thus, the perceptions of SMEs on the future of BBBEE elucidate the effect of the legislation on the economy and its operating industries. Research purpose: The study had an objective of comprehending the future of BBBEE and its effect on the SA economy and operating industries through the perceptions of SMEs. Motivation for the study: The study’s objective provided new insights and a profound understanding of BBBEE and its influence on the economy and operating industries. Research design, approach and method: The research followed a qualitative discipline with the use of a semi-structured interview to collect the empirical data. The study consisted of 22 participants, with one participant being excluded because of omissions identified. Main findings: The findings exemplified that BBBEE was promoting tender corruption and economic strain. Thus, the participants emphasised a restructured BBBEE model for the future. Practical and managerial implications: The findings invite policymakers to restructure the current BBBEE legislation so that it could promote equality. Furthermore, SMEs could relate to the industry effects and implement strategies to manage such effects on their businesses. Contribution or value-add: The findings contribute towards new research insights that determine the future of BBBEE