Since 1994, the South African government has introduced legislation to redress the ills
of apartheid. Broad-Based Black Economic Empowerment (BBBEE) and its antecedent
Black Economic Empowerment (BEE) was promulgated to break the poverty cycle of
the black masses by providing a platform for the black population to participate in the
mainstream economy by owning and managing businesses in South Africa.
The promotion of Small and Medium-sized Enterprises (SMEs) is the focal point in the
government’s strategy of redressing the imbalances of the past. This emphasis is to
overcome the current challenges that the economy faces with regard to unemployment,
poverty and inequality.
Access to finance is widely accepted as a common challenge that SMEs face. There is
a magnitude of funding opportunities available for SMEs, yet there is a disconnect
between SMEs and funders. This study aimed to determine the influence that BBBEE
has on SMEs with regard to accessing funding.
Fifteen participants from SMEs were interviewed to assess their perspectives on
BBBEE and the funding process, as well as, their opinions on the challenges that they
faced when accessing funding.
The research results affirmed that the amended BBBEE codes are an inhibitor for
SMEs when accessing funding due to many reasons. Therefore, the study posed some
recommendations to improve SMEs in their endeavor to access funding.
Mini Dissertation (MBA)--University of Pretoria, 2019.