An exploration of effectiveness of enterprise development initiatives, in the context of broad-based black economic empowerment, within the McCarthy franchised retail motor dealers in South Africa

Abstract

This study endeavoured to establish, specifically, the effectiveness of enterprise development initiatives within the McCarthy Ltd franchised dealer network and also to understand their low occurrence within the group. Effective implementation of enterprise development initiatives within McCarthy Ltd franchised dealer network would also mean compliance to the BBBEE codes of good practice. The study found that there was a lot of optimism among dealer principals to introduce and manage the concept of enterprise development within the group. A convenience sample of dealer principals from within the group countrywide was taken as well as that of beneficiary enterprises initiatives operating countrywide as well for this study. The actual occurrence of enterprise development within the McCarthy Ltd franchised dealer network however was not encouraging, at least based on the actual reported initiatives in existence. The study found that there was a significant gap between the requirements of start-up or early stage enterprises and requirements of maturing to mature businesses. It also indicated that dealer principals were not necessaril y always adequately equipped to deal with the requirements of beneficiary enterprise requirements and hence the low occurrence or lack of introduction of enterprise development initiatives on a much wider scale.