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Nina Kupzig |
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''SMES and black economic empowerment in South Africa'' |
( 2025, Vol. 45 No.3 ) |
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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. |
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Keywords: BEE, Small and Medium-sized Enterprises, Implementation |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General L2 - Firm Objectives, Organization, and Behavior: General |
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Manuscript Received : Oct 16 2025 | | Manuscript Accepted : Sep 30 2025 |
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