Rethinking B‐BBEE Policy Implementation: A Systematic Review of Regulatory Frameworks and Inclusive MSME Development in South Africa

Introduction: Broad-Based Black Economic Empowerment (BBBEE) is intended to address apartheid-era exclusion through ownership, skills development, preferential procurement, enterprise development and wider economic participation. Its relationship with inclusive Micro, Small, and Medium Enterprise (MSME) development, growth and sustainability remains contested because access to benefits is uneven and implementation may privilege formal compliance over substantive transformation.Methods: The researcher-selected databases and information sources were Google Scholar, ERIC. The eligibility protocol restricted publication years to 2015–2026. The exact calendar date of search execution was not recorded in the verified identification provenance; this is distinct from the publication-year eligibility range. Google Scholar and ERIC were the researcher-selected information sources. The eligibility period was 2015–2026.Results: B-BBEE provides an inclusion-oriented policy route and can support finance, women’s empowerment, enterprise development and procurement access. However, benefits are conditional and uneven. Compliance burdens, regulatory instability, weak institutional capacity, fronting, corruption, elite capture and symbolic compliance constrain inclusive outcomes. Enterprise and supplier development are most promising when linked to capability building, meaningful operational participation, transparent procurement, finance, quality systems, long-term relationships and coordinated stakeholder support. Direct evidence on long-term MSME survival and micro-enterprise outcomes remains limited.Discussion/Conclusion: BBBEE is neither uniformly ineffective nor consistently developmental. Its contribution to inclusive MSME growth depends on whether regulatory compliance is connected to measurable, broad-based and sustainable productive outcomes. A reoriented framework should reduce navigational burdens, strengthen accountability and monitor enterprise-level outcomes rather than relying primarily on scorecard attainment.

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Publication Details

Journal
Preprints.org
Published
2026-11-02
DOI
https://doi.org/10.20944/preprints202611.0001.v1
Primary Topic
Local Economic Development and Planning
Type
preprint
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Rethinking B‐BBEE Policy Implementation: A Systematic Review of Regulatory Frameworks and Inclusive MSME Development in South Africa

King Costa, Joseph Phosane Mngqibisa
2 links
Preprints.org
Local Economic Development and Planning
preprint

Rethinking B‐BBEE Policy Implementation: A Systematic Review of Regulatory Frameworks and Inclusive MSME Development in South Africa

King Costa, Joseph Phosane Mngqibisa
preprint en

Abstract

Introduction: Broad-Based Black Economic Empowerment (BBBEE) is intended to address apartheid-era exclusion through ownership, skills development, preferential procurement, enterprise development and wider economic participation. Its relationship with inclusive Micro, Small, and Medium Enterprise (MSME) development, growth and sustainability remains contested because access to benefits is uneven and implementation may privilege formal compliance over substantive transformation.Methods: The researcher-selected databases and information sources were Google Scholar, ERIC. The eligibility protocol restricted publication years to 2015–2026. The exact calendar date of search execution was not recorded in the verified identification provenance; this is distinct from the publication-year eligibility range. Google Scholar and ERIC were the researcher-selected information sources. The eligibility period was 2015–2026.Results: B-BBEE provides an inclusion-oriented policy route and can support finance, women’s empowerment, enterprise development and procurement access. However, benefits are conditional and uneven. Compliance burdens, regulatory instability, weak institutional capacity, fronting, corruption, elite capture and symbolic compliance constrain inclusive outcomes. Enterprise and supplier development are most promising when linked to capability building, meaningful operational participation, transparent procurement, finance, quality systems, long-term relationships and coordinated stakeholder support. Direct evidence on long-term MSME survival and micro-enterprise outcomes remains limited.Discussion/Conclusion: BBBEE is neither uniformly ineffective nor consistently developmental. Its contribution to inclusive MSME growth depends on whether regulatory compliance is connected to measurable, broad-based and sustainable productive outcomes. A reoriented framework should reduce navigational burdens, strengthen accountability and monitor enterprise-level outcomes rather than relying primarily on scorecard attainment.

Preprints.org
Decent work and economic growth, Reduced inequalities
Local Economic Development and Planning
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